European stocks opened the week lower, pressured by rising government bond yields in the eurozone and the United Kingdom, alongside escalating geopolitical tensions after Washington seized an Iranian cargo ship, followed by Iranian threats of retaliation.
The Stoxx Europe 600 index fell by 0.85% to 621 points as of 10:23 a.m.
The UK’s FTSE 100 dropped by 0.45% to 10,621 points, France’s CAC 40 declined by 1.1% to 8,334 points, and Germany’s DAX lost 1.15% to reach 24,421 points.
Meanwhile, energy stocks rose by 1.9%, supported by higher oil prices. Utility and telecom stocks also gained 0.7% and 0.2%, respectively. On the other hand, the travel and leisure sector led losses, falling by 2%, while banking and automotive stocks each declined by 1.8%.
On the political front, Iran rejected entering new peace talks with the United States, just hours after President Donald Trump announced plans to send envoys to Pakistan, warning of further strikes if Tehran does not comply with his demands. Markets are also awaiting the expiration of the ceasefire deadline tomorrow, Tuesday.
