International
Persian Gulf Turmoil Blunts European Bourses Midday
European bourses tracked moderately lower midday Monday after President Donald Trump said the US will block the Strait of Hormuz, following the failure of peace negotiations between Washington and Tehran over the weekend.Oil stocks led gains on continental trading floors, while food and tech shares lagged.Front-month North Sea Brent crude-oil futures were up 7.1% at $101.96 a barrel, in midday trades.Investors also eyed Wall Street futures flashing red, and lower closes overnight on Asian exchanges.In other news, Germany's Rheinmetall and the Netherlands-based Destinus announced a joint venture to manufacture missile systems. The venture will combine Rheinmetall's large production capacities with Destinus's specific technology, said company officials.The pan-continental Stoxx Europe 600 Index was off 0.6% mid-session.The Stoxx Europe 600 Technology Index was down 0.9%, and the Stoxx 600 Banks Index lost 0.8%.The Stoxx Europe 600 Oil and Gas Index rose 0.7%, while the Stoxx 600 Europe Food and Beverage Index declined 0.9%.The REITE, a European REIT index, fell 0.8%.On the national market indexes, Germany's DAX was down 1%, and the FTSE 100 in London lost 0.5%. The CAC 40 in Paris was down 0.8%, and Spain's IBEX 35 fell 1.5%.Yields on benchmark 10-year German bonds were higher, near 3.08%.The Euro Stoxx 50 volatility index was up 6.8% at 23.83, indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.
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