European shares hold flat as Middle East risks linger; Fed July minutes awaited
European equities were flat as Middle East geopolitical risk and upcoming Fed minutes kept risk-taking restrained. A bid for gold supported basic resources while rising sovereign yields weighed on technology and semiconductors, reinforcing duration sensitivity in growth stocks. UK inflation re-accelerated, complicating expectations for easier policy and keeping rates and FX pricing reactive. The mix of geopolitical inflation risk and policy uncertainty favors defensive positioning.
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European stocks were largely flat on Thursday as investors stayed cautious amid Middle East geopolitical risks ahead of the release of the Federal Reserve’s meeting minutes. Basic resources stocks rose 0.6%, supported by stronger gold prices. Technology shares fell 0.4% as a selloff in government bonds pushed yields higher. Semiconductor names including Soitec, Nordic Semiconductor and Scout24 lagged after a muted market reaction to Anthropic’s latest revenue figures.