European stocks turned lower on the first trading day of September, with the STOXX 50 and STOXX 600 each falling around 0.7% after giving up modest opening gains. The decline followed broader weakness across global equities. Rising oil prices amid escalating Middle East tensions added to inflationary pressure, while investors bet the ECB (European Central Bank) would tighten monetary policy further. Eurozone inflation accelerated for a second consecutive month to 3.3% in August, matching expectations and reaching its highest level since September 2023. Most major stocks declined, although energy shares advanced and Novartis surged nearly 4% after its oral multiple sclerosis drug met the main goal in late-stage trials.