European Shares Drift Lower As Oil Extends Gains For Fourth Day

(RTTNews) - European stocks edged lower on Thursday as lingering Middle East tensions overshadowed a decline in U.S. bond yields following the Treasury Department's move to dramatically ramp up government debt purchases.

Brent crude prices climbed more than 2 percent toward $94 a barrel, rising for a fourth consecutive session after U.S. President Donald Trump sharpened his rhetoric against Tehran, warning of economic consequences against any country that provided "any type of lifeline to Iran."

Iran's Foreign Minister Abbas Araghchi said Trump's "doubling down on failed policies will only bring further defeat" to the U.S.

In economic releases, German producer price inflation logged an annual increase of 3.0 percent in July, the highest in more than three years and faster than the 1.8 percent rise in June, according to data from Destatis. Economists had forecast prices to rise 2.7 percent in July.

The pan-European STOXX 600 slipped 0.2 percent to 650.13 after ending marginally lower on Wednesday.

The German DAX fell 0.6 percent, France's CAC 40 dropped 0.2 percent and the U.K.'s FTSE 100 was down 0.3 percent.

In corporate news, Holmen shares rose about 2 percent after the Swedish forest products company reported better-than-expected second-quarter results.

Skanska rallied 3.2 percent. The builder won an order worth $1.2 billion for developing four new data centers in the southeast region of the U.S.

Dutch insurer Aegon tumbled 3.4 percent following an announcement that CFO Duncan Russel will leave the company in April 2027.

British recruiter Hays declined 3.2 percent after reporting a full-year pre-tax loss due to restructuring charges and cutting its annual dividend.

JD Sports Fashion plummeted nearly 15 percent. The retailer lowered its profit guidance for fiscal year 2027 after reporting a steeper decline in Q2 underlying sales.