BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Major stock markets in Europe closed little changed on Tuesday as rising oil prices amid escalating tensions in the Middle East fueled inflation concerns. Prospects of a rate hike by the European Central Bank this week contributed as well to the largely cautious mood in the markets.
Political uncertainty in Germany weighed as well on sentiment. In Germany, the far-right AfD achieved a historic win in a state election. Chancellor Friedrich Merz said he is 'deeply shocked' by the overwhelming AfD election win. 'Not only did something change in Saxony-Anhalt yesterday but throughout all Germany. It will have repercussions, including on the international stage.'
Oil prices climbed higher after Iran threatened to retaliate against any new U.S. attacks on its assets and Saudi-led coalition forces vowed a resolute response to a wave of attacks from Houthi rebels.
Brent crude futures rose to $99.46 a barrel, hitting a six-week high earlier in the day, before paring gains and dropping down to around $98.
The pan European Stoxx 600 edged down 0.05%. The U.K.'s FTSE 100 ended 0.1% down. Germany's DAX closed almost unchanged from previous close, while France's CAC 40 crept up 0.14%. Switzerland's SMI finished with a loss of 1.55%.
Among other markets in Europe, Czech Republic, Denmark, Iceland and Spain ended weak.
Finland, Greece, Ireland, Norway, Poland, Portugal, Russia, Sweden and Türkiye closed higher, while Austria, Belgium and Netherlands ended flat.
In the UK market, miners Antofagasta, Glencore and Anglo American Plc climbed 4.7%, 4.2% and 2.7%, respectively. Rio Tinto advanced 1.3%.
Weir moved up 3.8%. Halma, Coca-Cola HBC, Vodafone Group, ICG, Croda International, Investec, Spirax Group, AutoTrader Group, Lion Finance, Standard Chartered, Scottish Mortgage and Airtel Africa gained 1%-3%.
Computacenter dropped 7.7%. Smith & Nephew drifted down 3.6%. JD Sports Fashion, Convatec Group, GSK, Burberry Group, Games Workshop, Kingfisher, Haleon, Next, AstraZeneca and Compass Group also ended notably lower.
In the German market, Fresenius, Rheinmetall, Volkswagen and Hochtief gained 2.3%-3.2%.
Porsche Automobil Holding, Bayer, Brenntag, BMW, BASF, Beiersdorf and Siemens climbed 1%-1.5%.
Infineon, Hannover RE, Munich RE, Heidelberg Materials, Continental, Fresenius Medical Care, Scout24, Mercedes-Benz, Zalando, Daimler Truck Holding and Deutsche Post ended sharp to moderately lower.
In the French market, Carrfour, Bureau Veritas and Danone gained 2%-2.5%. Air Liquide, Schneider Electric, Renault, Kering, Legrand, Airbus and L'Oreal also ended notably higher.
Edenred, Stellantis, Hermes International, STMicroelectronics, Sanofi, AXA, Publicis Groupe, LVMH, Teleperformance, Credit Agricole, ArcelorMittal and Societe Generale lost 1%-3.4%.
In economic news, data from Destatis showed Germany's exports decreased for the first time in six months in July but the trade surplus increased more than expected due to the sharp fall in imports.
Exports decreased 0.8% on a monthly basis in July, in contrast to the 0.9% increase in June, Destatis said. Exports were expected to remain flat in July. Similarly, imports declined 5.7%, reversing June's 4.5% increase.
As a result, the trade surplus rose to EUR 21.3 billion in July from EUR 15.4 billion in June. The surplus was seen at EUR 16 billion. In the same period last year, the surplus was EUR 16.8 billion.
On a yearly basis, exports growth eased sharply to 6% from 13.9% in June. Likewise, imports rose 3.1%, much weaker than prior month's 14% increase.
France's trade deficit widened to Euro 6.7 billion in July 2026 from Euro 5.8 billion in June, exceeding the expected Euro 6.0 billion shortfall. Imports rose 1.8% month-on-month to Euro 61.3 billion, while exports rose 0.3% to Euro 54.7 billion in July.
A separate data showed France's current account deficit widened to a seasonally adjusted Euro 4.7 billion in July from an upwardly revised Euro 1.6 billion in the previous month. It marked the largest shortfall since January 2023.
A report from British Retail Consortium said UK retail sales rose 0.5% year-on-year on a like-for-like basis in August, slowing from a 1% increase in July and marking the weakest growth since October 2024. Total retail sales growth also eased to a four-month low of 0.7% from 1.3% in the previous month.
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