European shares slip as U.S.-Iran strikes lift oil and bond yields

  • U.S.-Iran strikes pushed European shares lower while the STOXX 600 remained on track for monthly gains.
  • 0.1% was the STOXX 600 decline to 655.54 points by 0712 GMT.
  • OHB gained 7.3% after signing a nearly €1 billion satellite contract.

European shares edged lower after fresh U.S.-Iran military strikes pushed oil prices and bond yields higher, although the STOXX 600 remained on track for a fifth consecutive monthly gain. The index fell 0.1% to 655.54 points by 0712 GMT, while trading was expected to be subdued because London markets were closed for a bank holiday. Germany's DAX dropped 0.7% ahead of inflation data that could influence expectations for the European Central Bank (ECB), the euro zone's central bank. Euro zone inflation and U.S. payrolls data are due later in the week, with investors largely pricing a September ECB rate increase. Energy shares rose alongside Brent crude, which gained more than 2% to about $90.70 a barrel, reinforcing inflation concerns. The STOXX 600 was still set to gain 0.9% in August, supported by strong corporate earnings and continued enthusiasm for artificial intelligence. OHB advanced 7.3% after securing a nearly €1 billion contract to build 18 satellites for the European Union's IRIS² secure communications program, while Bakkafrost fell 7.4% after reporting second-quarter results.

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