Financial Wire

Persian Gulf Outlook Damps European Bourses Midday

-- European bourses tracked lower midday Monday as traders weighed reports that Tehran will not participate in pending peace-talks with Washington, and after both Iran and the US have said the Strait of Hormuz is generally closed to shipping.

The pan-continental Stoxx Europe 600 Index was off 1.1% mid-session.

Front-month North Sea Brent crude-oil futures were up 5.4% at $95.29 a barrel.

Oil stocks led gains on continental trading floors, while bank and tech shares lagged.

Investors also eyed Wall Street futures flashing red amid higher closes overnight on Asian exchanges.

In economic news, Germany's producer price index decreased by 0.2% year over year in March, but rose by 2.5% month over month, the latter move due to higher energy prices, Destatis reported.

The Stoxx Europe 600 Technology Index was down 1.5%, and the Stoxx 600 Banks Index lost 1.9%.

The Stoxx Europe 600 Oil and Gas Index rose 1.6%, while the Stoxx 600 Europe Food and Beverage Index declined 1.3%.

The REITE, a European REIT index, fell 1.4%.

On the national market indexes, Germany's DAX was down 1.4%, and the FTSE 100 in London lost 0.7%. The CAC 40 in Paris was down 1.2%, and Spain's IBEX 35 eased 1.3%.

Yields on benchmark 10-year German bonds were higher, near 3%.

The Euro Stoxx 50 volatility index was up 15% at 22.43, indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

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