FX.co ★ European Stocks Waver

European stocks were little changed on Thursday as investors weighed moves in global bond markets and kept a close eye on rising oil prices amid ongoing tensions in the Middle East. A key driver was the US Treasury’s decision to at least double the size of its longer-dated bond buyback program, which sent Treasury yields sharply lower. At the same time, uncertainty over the US–Iran standoff continued to hang over markets, helping to keep oil prices elevated.

Among major European names, ASML and L’Oréal advanced, and automotive stocks were particularly strong: BMW rose 1.4%, Volkswagen 1%, and Mercedes-Benz 0.8%. By contrast, Rheinmetall slipped 1.5%, while SAP, BASF and Nokia each fell around 1.3%–1.4%. LVMH and Linde also traded lower.

On the macroeconomic front, investors are digesting German producer-price figures showing inflation at its highest level in more than three years. Market attention now turns to the European Central Bank’s latest meeting minutes for signals on the direction of future monetary policy.