Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Europe open: Stocks rattled by Israel conflict as oil prices surge
(Sharecast News) - Stocks across Europe mostly declined on Monday as oil prices surged on geopolitical uncertainty following the weekend attack on Israel. The Europe Stoxx 600 index was down 0.2% early on, with the Dax falling 0.7%, the Cac 40, FTSE MIB and Ibex 35 each losing 0.6% and the FTSE 100 rising 0.2%.
Crude prices, which dropped sharply last week, were rebounding strongly over the weekend after a surprise attack by Hamas on Saturday morning, killing more than 700 people, including 260 at a music festival. Israel swiftly retaliated launching air strikes in Gaza, which are said to have killed more than 500.
Brent touched a high of nearly $89 a barrel before pulling back to $86.56 on Monday morning, still up 2.3% on the day.
"As it nearly always does, an escalation of tensions in the region has helped push up oil prices. This is inevitable given how much of the world's crude reserves and production are centred there," said AJ Bell investment director Russ Mould.
Israeli authorities have alleged that Iran may have been involved in the attack, which some are predicting could lead to sanctions by the US on Iran's crude exports, further propping up prices.
Meanwhile, analysts at Rabobank said the event has the potential to make the task of central bankers even more challenging. "A sustained upward pressure in energy prices will make the task faced by central bankers even more difficult. Specifically they will have to weigh up (i) the downward impact on economic growth of higher oil prices and (ii) the risk that an energy driven increase in headline inflation will pose to consumer inflation expectations and the wage negotiation process," they said.
Monday is set to be a relatively quiet day in terms of economic data, with no major indicators due from Europe or the US, with the latter quiet for Columbus Day - though Wall Street will remain open.
Oil stocks up, airlines down
Oil and gas stocks rose strongly as crude prices soared. However, Tel Aviv and London-listed Energean was understandably bucking the trend, given it is developing a substantial gas field offshore Israel.
The Stoxx Europe 600 Oil & Gas Index was up nearly 2% early on, with Shell, BP and TotalEnergies putting in decent gains.
Airlines were under pressure from both elevated oil prices and travel uncertainty, with Deutsche Lufthansa, IAG, Air France-KLM and Ryanair suffering heavy losses.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.