European equities delivered a mixed performance on Monday after escalating tensions in the Middle East lifted Brent crude above $90 per barrel for the first time in a month, renewing concerns that higher energy prices could add to inflationary pressures, influence interest rate expectations and weigh on economic growth.
Market participants are also preparing for earnings reports from major U.S. technology companies and this week’s European Central Bank policy meeting. The ECB is widely expected to keep interest rates unchanged after delivering its first rate increase in almost three years on June 11.
German producer prices extend annual gains
German government bond yields climbed to their highest level in two years after fresh data showed producer prices increased for a third consecutive month in June.
According to Destatis, producer prices rose 1.8 percent year over year in June, easing from the 2.2 percent increase recorded in May.
The latest increase marked the third straight month of annual growth, supported mainly by higher intermediate goods costs and rising energy prices.
On a monthly basis, producer prices declined 0.3 percent, compared with economists’ expectations for a 0.2 percent decrease.
FTSE falls while DAX and CAC advance
The U.K.’s FTSE 100 Index fell 0.3 percent, while Germany’s DAX Index gained 0.2 percent and France’s CAC 40 Index added 0.4 percent.
In company news, budget airline Ryanair (LSE:0A2U) declined after reporting a 34 percent fall in fiscal first-quarter profit, missing analysts’ expectations.
Self-storage specialist Big Yellow Group (LSE:BYG) also traded lower after announcing first-quarter revenue growth of 3 percent.
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