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Oil tops $90 as Middle East tensions lift equities and yields

The Euro Stoxx 600 was down 0.2%, while the FTSE 100 fell 0.6% led by a 1.2% drop in real estate, as the 10-year gilt yield rose about 4 basis points.

Reported · Written up by our desk · Europe

Oil prices rose above $90 amid escalating Middle East tensions, lifting energy stocks in Europe even as broader markets slipped. The Euro Stoxx 600 was down 0.2%, while the UK’s FTSE 100 fell 0.6%, with the real estate sector leading declines, down 1.2%.

Energy companies were an exception to the move lower, with BP shares up 1.5% and Shell up 0.7% as oil prices climbed. In the bond market, higher oil prices flowed through to government yields, with the UK 10-year yield up by about 4 basis points.

The Guardian Business also linked the market picture to corporate and macro concerns. UK warehouse landlord Segro rejected a third takeover proposal from US rival Prologis that valued Segro at £13.5 billion, including an offer structure with up to £2.7 billion in partial cash and 0.0890 Prologis share for each Segro share.

Separately, analysts at Morgan Stanley warned that Europe could face a diesel supply squeeze this year, adding to the backdrop for energy-related moves across markets. The coverage also noted the pound was up 0.05% against the dollar at $1.34.

Latest closeFTSE 100 10,721.67 ▲0.1%

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