European stocks hit multi-month lows as oil tops $113 and Fed decision looms

  • European stocks fell to multi-month lows as oil-supply disruptions, geopolitical tensions, higher yields and AI governance concerns weakened sentiment.
  • Brent crude rose above $113 a barrel after attacks on Saudi infrastructure, while the STOXX 600 fell 0.35% and Bloom Energy declined 6.91% to $256.71 in Monday premarket trading.
  • Markets priced in a 90% probability of a 25-basis-point Federal Reserve increase Wednesday, while UK payrolled employment fell by 26,000 in August.

European equities weakened across Monday and Tuesday, with the STOXX 600 falling 0.35% to its weakest level in more than three months and major national indices reaching multi-month lows as geopolitical tensions, rising oil prices, elevated bond yields, weaker UK labor data and uncertainty ahead of the Federal Reserve decision unsettled investors. Brent crude later rose 1.2% above $113 a barrel after attacks on Saudi infrastructure, while an earlier market report cited a 1.67% rise to $107.42 following disruption to the East-West pipeline system. Markets assigned a 90% probability to a 25-basis-point Federal Reserve increase on Wednesday, potentially the first since mid-2023. Technology and AI-infrastructure stocks also faced pressure after OpenAI and Anthropic executives called for a temporary pause or slower development of advanced AI and stronger international safeguards, raising concerns about data-center investment and demand for Bloom Energy’s fuel cells.

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European stocks hit multi-month lows as oil tops $113 and Fed decision looms - CoinPost Terminal