European equity markets were mixed on Monday as investors continued to monitor uncertainty surrounding the Strait of Hormuz while preparing for important U.S. inflation figures later in the week that could provide further direction on the Federal Reserve’s interest-rate outlook.
Geopolitical developments remained a major influence on sentiment after Iran warned that it would not fully reopen the Strait of Hormuz unless the United States agreed to a series of conditions.
The stance has renewed concerns that U.S. President Donald Trump could reconsider military measures that had recently been put aside if diplomatic efforts fail to produce sufficient progress.
However, Trump adopted a more patient tone in an interview with Axios on Sunday, indicating that he was prepared to allow mounting economic pressure on Iran to play a larger role rather than immediately pursuing further military escalation.
FTSE 100 slips while DAX and CAC 40 advance
The cautious backdrop produced divergent performances across Europe’s largest stock markets.
The U.K.’s FTSE 100 Index declined 0.2 percent, while France’s CAC 40 Index edged 0.1 percent higher. Germany’s DAX Index performed more strongly, gaining 0.3 percent.
Investors are also looking towards U.S. inflation data later this week for fresh evidence on the direction of price pressures and the potential implications for Federal Reserve monetary policy.
Plus500 rallies after record first-half performance
Among individual companies, Plus500 (LSE:PLUS) shares surged in London after the online trading group announced record results for the first half of the year.
The strong performance contrasted with weakness in Marshalls (LSE:MSLH), which moved sharply lower after the building products manufacturer reported a slight decline in first-half revenue.
Swiss-Irish baked goods company Aryzta (TG:YZA0) also came under notable selling pressure after announcing lower profit and revenue for the first six months of the year.
UK permanent hiring stabilises after prolonged decline
Economic data provided a more encouraging signal from the British labour market.
The KPMG/REC Report on Jobs showed that permanent staff appointments stabilised during July, bringing an end to a downturn that had lasted 45 consecutive months.
Temporary billings also strengthened, recording their fastest growth in three years as employers increasingly turned towards flexible staffing arrangements.
The improvement offered some evidence of stabilisation in hiring conditions, although geopolitical uncertainty and the upcoming U.S. inflation figures remained key considerations for European investors at the start of the week.
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