European shares dip as banks hit over 3-month low, oil prices weigh

According to Business Recorder, shares across Europe slid on Thursday, with bank stocks reaching their weakest point in more than three months. Fresh selling in bonds and elevated energy costs fanned concern that higher inflation could slow economic growth. By 0723 GMT, the pan-European STOXX 600 index had lost 0.9% to 624.24 points.

European banks lost nearly 2%, with Deutsche Bank, Banco Santander, Societe Generale and Unicredit all extending losses into a second session. Euro zone government bond yields were meanwhile moving back toward their recent peaks. Crude climbed over 3% as supply worries tied to the key Middle East region lingered, and a hurricane risk near US offshore sites led producers to reduce output.

Minutes from the latest Federal Reserve policy meeting showed officials were split on whether to lift rates further. Investors now look to the European Central Bank's meeting accounts for policy signals, while several ECB and Fed officials, plus Bank of England Governor Andrew Bailey, are due to speak later. Separately, Bavarian Nordic rose 2.9% after the Denmark-based biotech company increased its revenue outlook for 2026 and raised its EBITDA margin projection.