Global Market: European shares edge lower as investors await Iran sanctions details

European shares edged lower on Monday, with technology stocks weighing on the broader market as investors awaited details of threatened U.S. sanctions on Iran and looked ahead to Nvidia’s quarterly results, Reuters reported.

The pan-European STOXX 600 was down 0.1% at 653.40 as of 0713 GMT. Markets were focused on the potential impact of new U.S. economic measures targeting Iran and its trading partners, while Tehran warned it could disrupt oil exports from the Gulf if the economic pressure escalates.

Energy stocks decline as oil prices rise

Energy stocks fell 0.4%, tracking higher crude prices. Brent crude was trading around $92 a barrel as concerns over the potential disruption of oil supplies from the Gulf added to market uncertainty.


The prospect of tighter sanctions and a possible Iranian response has heightened sensitivity in energy markets, with investors assessing the implications for global inflation and economic growth.

Basic resources gain on gold strength

Basic resources was the strongest-performing European sector, rising 0.8% as gold prices advanced amid a weaker U.S. dollar.

The move into precious metals reflected continued demand for defensive assets as investors navigated geopolitical risks and uncertainty surrounding the outlook for global monetary policy.

Nvidia results in focus

Technology stocks remained under pressure ahead of Nvidia’s earnings report due on Wednesday. According to Reuters, investors are closely watching whether the chipmaker can deliver results strong enough to justify the exceptionally high expectations surrounding artificial intelligence-related spending.

Nvidia’s results are expected to provide fresh insight into the strength of demand for AI chips and the sustainability of the rapid investment cycle that has driven technology stocks and broader markets.

Powell speech to offer rate clues

Investors are also looking ahead to Federal Reserve Chair Kevin Warsh’s speech at Jackson Hole, Wyoming, on Friday for signals on the U.S. interest-rate outlook.

Market participants are seeking greater clarity on the Federal Reserve’s policy path, particularly as markets continue to assess inflation risks, economic growth and the potential timing of future rate moves.

With geopolitical tensions, oil prices, Nvidia’s earnings and monetary policy all in focus, European markets are likely to remain sensitive to developments across global financial and commodity markets in the days ahead.

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