European equities slipped into negative territory on the first trading day of September, with both the STOXX 50 and STOXX 600 down about 0.7%. Early modest gains faded as the region tracked broader weakness across global markets. A renewed climb in oil prices, driven by escalating tensions in the Middle East, is amplifying inflationary pressures and reinforcing expectations that the ECB will further tighten monetary policy.
In the euro area, inflation accelerated for a second consecutive month to 3.3% in August, in line with forecasts and marking its highest reading since September 2023.
Among major movers, HSBC (-1.3%), Roche (-1.9%), Siemens (-1.5%), AstraZeneca (-1.5%), Banco Santander (-1.6%) and SAP (-2.7%) traded lower. By contrast, energy stocks outperformed: Shell (+1.4%), TotalEnergies (+1.3%) and BP (+3.5%) advanced. Novartis climbed nearly 4% after its oral multiple sclerosis treatment achieved its primary endpoint in late-stage clinical trials.
