European shares rise as oil eases on Middle East shipping hopes

Paris and Frankfurt finished the session in the green, though well below their intra‑day peaks, as crude oil prices reclaimed some of Wednesday’s losses. London lagged, weighed down by declines in energy majors BP and Shell.

"Lower energy prices are providing a supportive environment for European markets," said Fawad Razaqzada, market analyst at FOREX.com.

The optimism stems from reports that Iran and Oman are close to agreeing on a temporary shipping corridor through the Strait of Hormuz. A smoother flow of oil could keep energy costs subdued, a factor that analysts say is bolstering the resilience of the European economy.

US data and tech earnings shape market tone

Across the Atlantic, the New York exchanges were largely flat in early trading. The Commerce Department reported that the personal consumption expenditures price index rose 3.7 % in July year‑on‑year, matching expectations but keeping inflation above the Federal Reserve’s 2 % target. The reading fuels speculation that the central bank may need to keep rates higher for longer.

Investors are also watching the annual Jackson Hole symposium, where Kevin Warsh, the Fed chair, is expected to address the path back to the long‑term inflation goal. Bret Kenwell, analyst at eToro, warned that “inflation is still too high for comfort, and investors will be watching to see whether Fed Chair Kevin Warsh uses Friday’s Jackson Hole speech to address how policymakers plan to bring it back toward the Fed’s long‑term target.”

Tech earnings and corporate news

All eyes are on Nvidia after its after‑hours earnings report on Wednesday. The AI‑chip maker’s performance is seen as a barometer for the broader artificial‑intelligence boom that has propelled markets to record highs. Axel Rudolph of IG noted, “The second‑quarter number itself may end up mattering less than what management says about the quarter ahead.”

Shares of the chipmaker slipped about 1 % after the release. Meanwhile, Meta rose more than 2 % after announcing a settlement that could see the company pay up to $16.7 billion to a coalition of US states and adjust how younger users interact with its platforms.

Market snapshot and outlook

Oil prices continued their modest decline, with West Texas Intermediate down 0.3 % at $82.10 a barrel and North Sea Crude at $87.03. Major indices closed as follows: DOW down 0.2 % at 53,457.75, S&P 500 down less than 0.1 % at 7,676.26, Nasdaq Composite down 0.2 % at 26,103.02. In Europe, the FTSE 100 slipped 0.1 % to 10,878.12, while the CAC 40 rose 0.3 % to 8,462.39 and the DAX edged up 0.1 % to 26,285.96. Asian markets were broadly higher, led by the Nikkei 225 up 0.6 % at 66,262.16 and the Hang Seng Index also up 0.6 %.

Currency markets saw the Euro/dollar slip to $1.1652, the Pound/dollar fall to $1.3589, while the Euro/pound rose to 85.75 pence. The Dollar/yen edged up to 159.38 yen.