European equities moved lower on Wednesday following further military exchanges involving the U.S. and Iran, while investors also prepared for the European Central Bank’s monetary policy decision on Thursday.
U.S. forces destroyed five Iranian tankers, while Iran subsequently launched missile strikes targeting Jordan, adding to the continuing conflict in the Middle East.
Markets were also pricing in a 25-basis-point interest rate increase from the ECB at Thursday’s meeting.
France’s CAC 40 fell 1.9%, Germany’s DAX declined 1.7% and the UK’s FTSE 100 was down 1.1%.
Energy shares rise as Brent moves above $100
Energy companies were among the stocks moving higher as Brent crude rose above $100 a barrel.
BP Plc (LSE:BP.), Shell (LSE:SHEL) and TotalEnergies (EU:TTE) advanced as oil prices increased amid concerns about potential further disruption to global supplies from the Gulf region.
Elsewhere, Swiss building materials company Holcim (TG:HLBN) declined after investing in Cloud Cycle, a UK-based start-up that provides a real-time data system for ready-mix concrete operations.
French tubular solutions provider Vallourec (EU:VK) also traded lower after signing an agreement with Saudi Aramco to supply Oil Country Tubular Goods pipes.
Victrex, Energean and Aberdeen move higher
Victrex (LSE:VCT) rose after increasing its full-year pre-tax profit guidance and appointing an interim Chief Financial Officer.
Energean (LSE:ENOG) also advanced after reporting a 45% increase in first-half profit.
Aberdeen (LSE:ABDN) moved higher after appointing Torbjorn Magnusson as its new chair.
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