BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks were deep in the red on Monday as a broadening Middle East conflict dented investors' appetite for riskier assets.
Inflation worries returned to the fore as Brent crude prices soared nearly 10 percent to their highest level since January 2025 on fears of supply disruptions from the Middle East.
All eyes are on the status of the Strait of Hormuz, which is crucial for the flow of oil to the rest of the world.
In economic releases, German retail sales fell more than expected in January, while British house prices rose slightly faster than expected last month after a dip at the end of 2025, separate reports showed.
The release of manufacturing PMI data for the Eurozone, the U.K., and the U.S. will be the spotlight later today.
The pan European Stoxx 600 plunged 1.9 percent to 621.95 after closing 0.1 percent higher on Friday.
The German DAX slumped 2.2 percent, France's CAC 40 gave up 2 percent and the U.K.'s FTSE 100 was down 1 percent.
Banks led losses, with Commerzbank, Deutsche Bank, BNP Paribas and Barclays falling 3-4 percent due to rising concerns about the lack of transparency in private lending.
British engineering firm Senior fell nearly 2 percent after 2025 revenue came in below expectations.
Medical products maker Smith & Nephew plummeted 5 percent despite reporting higher profits and cash flow for 2025.
Bunzl advanced 1.5 percent after the business supplies distributor reported 3.0 percent revenue growth at constant exchange rates in 2025, driven by acquisitions.
Sage Group shares were modestly higher. The software company said that it is launching a share repurchase program to repurchase up to GBP 300 million.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
