BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks closed lower on Monday, weighed down by concerns about inflation and global economic outlook, as oil prices moved up amid an escalation in tensions in the Middle East.
Additionally, Fed Chair Kevin Warsh's hawkish tone during his speech at Jackson Hole Economic Symposium on Friday fueled interest rate concerns, resulting in investors' refrain from indulging in any significant buying.
Warsh noted that inflation remains elevated and there might be a need to tighten policy if inflation does not show signs of easing.
In Middle East news, American forces targeted two rocket launches on Iran's Larak Island, killing and wounding several Iranian fighters and civilians. Washington 'took limited, precise action against IRGC minelaying forces posing an imminent threat in the Strait of Hormuz,' the U.S. Central Command said.
Iran's Islamic Revolutionary Guard Corps (IRGC) said it subsequently launched attacks on U.S. military bases in Jordan.
Brent crude futures rose to $91.52 a barrel before easing to around $90.50, still up sharply from previous close.
Among the major markets, Germany and France ended notably lower with their benchmark indexes DAX and CAC 40 sliding 1.17% and 0.79%, respectively. The UK market was closed today for Bank Holiday. Switzerland's SMI settled 0.79% down, and the pan European Stoxx 600 ended 0.62% down.
Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Iceland, Netherlands, Spain, Sweden and Türkiye closed weak.
Norway, Poland and Russia ended higher, while Ireland and Portugal closed flat.
In the German market, Siemens Energy shed more than 5%. Rheinmetall, Heidelberg Materials and Vonovia closed lower by more than 3%.
MTU Aero Engines, Hochtief, Adidas, Beiersdorf, Siemens, Infineon, Fresenius, Fresenius Medical Care, Deutsche Boerse and BMW shed 1%-2%.
Zalando, Continental and Brenntag gained 1.8%-2%. BASF, Bayer, Mercedes-Benz and Volkswagen posted modest gains.
In the French market, Airbus, Schneider Electric, Legrand, Safran and Capgemini closed down by 2%-3%.
Saint-Gobain, Unibail Rodamco, Edenred, STMicroelectronics, AXA, Dassault Systemes, LVMH, Vinci and L'Oreal lost 1%-1.9%.
Pernod Ricard, Stellantis, Orange, TotalEnergies and Renault ended notably higher.
Fitch Ratings affirmed France's rating at 'A+' with a Stable Outlook. However, high and rising public debt, a challenging political and social environment, and weak potential growth are seen as constraints.
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