European stocks fell slightly in trading on Monday, with oil prices rising following renewed US and Iranian attacks, which raised concerns about inflation and strengthened expectations that the European Central Bank would raise interest rates later this week.
The European Stoxx 600 index fell by 0.1 percent to 649.17 points by (07:11) GMT.
The main Swiss stock index fell by 1.2 percent, while the shares of Novartis, which has a large weight in the market, fell by 3.3 percent, after its experimental drug, Belacarsen, failed to achieve a main goal during an advanced clinical trial in its final stages.
In Germany, the DAX index was largely stable, in line with the performance of most other European stock exchanges. This came after the far-right Alternative for Germany party topped the Saxony-Anhalt state elections over the weekend, obtaining 44 percent of the votes, according to exit polls, in a strong blow to Chancellor Friedrich Merz.
Energy stocks receive support from the rise in oil
Energy stocks rose 1.2 percent, tracking gains in oil prices. Brent crude futures rose by more than a dollar per barrel, after mutual strikes between the United States and Iran on ships sailing in the Strait of Hormuz and other areas increased fears that supply disruptions would continue for a long period.
The rise in oil prices led to escalating concerns about inflation, which strengthened the justification for central banks to continue tightening monetary policy.
Markets widely expect the European Central Bank to raise interest rates by 25 basis points on Thursday, while markets await US consumer price inflation data scheduled for release later this week, after a strong jobs report reinforced expectations that the Federal Reserve will raise interest rates this month.
Investors are also awaiting the release of economic data for the euro zone for the second quarter later today. Trading volumes may be lower than usual, with US stock markets closed for a public holiday.
Britain's new finance minister, John Healey, a former unionist who supported flexible bank regulation, will soon have to decide the appropriate balance for what could be the defining moment of Andy Burnham's premiership.
Bond investors want to know how Burnham will advance his ambitions, from housing and welfare to defence, while maintaining fiscal discipline.
Ahead of his first budget on October 28, Haley will deliver his first major speech on Monday on how to accelerate the growth of the world's fifth-largest economy, a challenge that his predecessors failed to achieve for 20 years, according to Reuters.
In light of the rise in global borrowing costs, the budget is also likely to include tax increases.
Saudi-Serbian relations are heading towards a new phase of economic and diplomatic cooperation, with Riyadh and Belgrade moving to expand the partnership in the sectors of energy, technology, agriculture and food industries, in parallel with rapid growth in the volume of trade exchange between the two countries. This comes at a time when the two countries' hosting of Expo 2027 in Belgrade and Expo 2030 in Riyadh opens additional horizons for exchanging experiences and building new partnerships and projects.
A meeting held last week in Belgrade between Saudi Deputy Foreign Minister Walid Al-Khuraiji and Serbian Foreign Minister Marko Duric witnessed the signing of an agreement to cancel visas for holders of diplomatic and official passports, in a step that would support official communication and enhance cooperation between the two countries.
The two sides discussed ways to develop cooperation in the fields of energy, through joint projects, information and communications technology, advanced technologies, agriculture and food industries, in addition to enhancing the presence of Serbian companies in the Saudi market and increasing the investments of Saudi partners in Serbia. Serbia is scheduled to participate in the Saudi Food Exhibition in Jeddah later this month with more than 50 companies.
In an indication of growing economic relations, Bizenic explained that trade exchange between Serbia and Saudi Arabia has witnessed remarkable growth in recent years, reaching $121 million by the end of 2025, an increase equivalent to nine times its level in 2012. The exchange continued to grow during the current year, reaching $130.4 million in the first half of 2026, recording a 152 percent increase compared to the same period of the previous year.
