Some weak economic data from the region – the UK GDP report being an exception – weighed as well on market sentiment

European stocks fell on Wednesday, hurt by higher bond yields and rising oil prices amid lingering uncertainty about Iran and the US reaching a deal to end their war and pave the way for the reopening of the Strait of Hormuz.

Some weak economic data from the region – the UK GDP report being an exception – weighed as well on market sentiment.

Brent Crude futures moved to almost $99.00 a barrel, adding more than 3%.

The pan-European Stoxx 600 declined 0.5%.

Russia, Greece and Poland closed higher, while Norway and Portugal ended flat.

Austria, Belgium, Czech Republic, Denmark, Finland, Iceland, Ireland, Netherlands, Spain, Sweden, Switzerland, UK, Germany and France ended weak.

In economic news, data from the Federal Employment Agency showed Germany’s unemployment increased more than expected in September, with the number of people out of work increasing by 12,000 from August, much larger than forecast of 1,000. This followed an increase of 5,000 in August.

Germany’s retail sales grew 1.3% on a monthly basis in August, reversing a 3.2 percent fall in July, data from Destatis showed. Sales were forecast to climb 1.6%. On an annual basis, retail sales fell 0.4% but slower than July’s 2.2% decrease.

Preliminary estimate from the statistical office INSEE said French inflation accelerated more than expected in September on energy and fresh food prices. Consumer price inflation edged higher to 3% from 2.4% in August. A similar higher rate was last seen in February 2024. The rate was also above economists’ forecast of 2.8%.

EU harmonized inflation jumped markedly to 3.4% from 2.6% in the prior month. The rate was seen at 3%.