European Markets Fall as US-Iran Clashes Drive Up Oil Prices and Rattle Investors
Market Reactions and Key Financial Developments
May 5 (Reuters) - European shares nudged lower on Tuesday, with investors on edge after the U.S. and Iran launched fresh attacks in Gulf waters, while global oil prices remained elevated.
Stock Market Performance
The pan-European STOXX 600 was down 0.1% at 604.68 points, as of 0704 GMT, after posting its biggest drop in a month on Monday. Major regional bourses were also trading lower, with London's FTSE 100 down 1%.
Impact of Middle East Tensions
The escalation in the Middle East conflict followed U.S. President Donald Trump's attempt to get stranded vessels through the Strait of Hormuz, which connects the Gulf to wider markets and typically carries oil and gas supply equal to about 20% of global demand every day.
Oil Prices and Inflation Concerns
Soaring oil prices have weighed on energy-dependent Europe, stoking inflation fears that have led to expectations of two to three European Central Bank rate hikes this year and dragged shares below pre-war levels.
Company Highlights
HSBC Faces Losses
Shares of HSBC shed 5.1% after the lender reported an unexpected $400-million loss linked to a fraud case in Britain that resulted in first-quarter profit below estimates.
Anheuser-Busch InBev Surges
Anheuser-Busch InBev advanced 6.3% after the Belgian beer maker posted quarterly sales and profits well above forecast.
(Reporting by Twesha Dikshit; Editing by Sherry Jacob-Phillips)
