European stocks ended higher on Monday, although off their best levels of the session.
Iran fired drones and missiles at Israel on Saturday in retaliation for what it claims was an Israeli attack on its consulate in Syria on April 1.
But 99% of the more than 300 drones and missiles have been intercepted and, for the moment, Tel Aviv does not appear to have any immediate plans to respond.
The pan-regional Stoxx 600 index rose 0.13% to 505.93. Britain’s FTSE 100 index was the only exception, down 0.38% at 7,965.53.
Gold futures edged higher after a slightly volatile session, while euro and crude futures were both lower.
Investors are also looking for clues from the U.S. Federal Reserve after higher-than-expected inflation data last week.
“The week begins on a difficult note, with unease which further darkens the feeling. Investors are on alert for retaliation following the Iranian attack on Israel. There are fears that a new dangerous episode of conflict escalation is about to occur,” said Hargreaves-Lansdown analyst Susannah Streeter.
“All eyes are on the diplomatic efforts to defuse the situation, which have contributed to lowering oil prices. »
Energy producers BP, Shell and Equinor were in the red as fears of rising crude prices dissipated.
On the economic front, industrial production in the euro zone rebounded slightly in February after a significant slowdown the previous month, according to figures published Monday by Eurostat.
Seasonally adjusted industrial production was up 0.8% on the month, following a 3.0% decline in January, revised upwards from the initial reading of -3.2%. This reading was consistent with economists’ projections.
Brent crude was near $90 a barrel as investors worried about supply threats if the situation between Israel and Iran escalates.
In stock news, Temenos shares jumped 20% after the Swiss software company said a company-commissioned report concluded that claims by short seller Hindenburg Research were incorrect.
The commission found that the Hindenburg report, which wiped out nearly a third of the company’s value in February, “presented purported facts about Temenos in a distorted manner or out of context.”
Actions in Ages rose more than 3% after the French lender BNP Paribas agreed to buy back 9% of the capital of the Belgian insurer, its long-time partner, from the Chinese. Fosun Group for around €730 million.
