European Shares Decline On Middle East Worries

(RTTNews) - European stocks fell on Monday, with increased geopolitical tensions and fading expectations of an early rate cut in the U.S. keeping investors worried.

Israel struck Hamas and Hezbollah terror facilities in Khan Yunis and Lebanon in overnight strikes, the Israel Defense Forces said earlier today.

The dollar and bond yields remained supported after government data showed U.S. job growth surged unexpectedly in December.

The yields on the European 10-year benchmark note and the German 10-year rose for a third straight session ahead of U.S. consumer price inflation and producer price inflation data due this week.

The U.S. earning season also remains on investors' radar, with major banks including JPMorgan Chase and Citigroup due to report their financial results on Friday.

The pan-European STOXX 600 was down 0.2 percent at 475.37 after declining 0.3 percent on Friday.

The German DAX was marginally higher, while France's CAC 40 slipped 0.1 percent and the U.K.'s FTSE 100 declined 0.4 percent.

Danish Jewlery maker Pandora gained 2 percent after it reported a 12 percent year-on-year increase in organic sales for the October-December interval.

Shipping giant Maersk fell 1.3 percent as it announced a significant change in its shipping routes for the foreseeable future in response to the threat posed by Houthi rebels based in Yemen.

Casino shares fell about 1 percent. The French retail company said that the European Commission has authorized a consortium led by Daniel Kretinsky to take control of the Group as part of the financial restructuring.

Evotec, a German drug discovery and development company, climbed 1.3 percent after announcing progress within the strategic partnership with Bristol Myers Squibb.

Boeing shares listed in Frankfurt slumped 6.5 percent after the Federal Aviation Administration (FAA) ordered airlines to temporarily ground some Boeing 737 Max 9 planes for safety inspections.

Oil & gas major BP Plc fell around 1 percent in London and peer Shell lost 2 percent as oil prices fell more than 1 percent on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output.

Earlier today, Shell flagged impairment charges of about $2.5 billion to $4.5 billion for the fourth quarter, mainly related to the Singapore assets.

Plus500, a fintech company, soared 6 percent after announcing that it has delivered its annual results significantly ahead of market expectations.

In economic releases, data showed Germany's exports and imports rebounded in November.

Exports posted a monthly growth of 3.7 percent, reversing a fall of 0.4 percent in October, Destatis reported.

Likewise, imports gained 1.9 percent, following a 1.1 percent decrease. Separate data revealed that Germany's factory orders rose less than expected in November.

Orders climbed 0.3 percent on a monthly basis in November, in contrast to the revised 3.8 percent decline in October. But the pace of expansion was weaker than the expected rate of 1.0 percent.

U.K. job placements declined again at the end of the year, albeit at softer rates as employers remained cautious about hiring, a survey report compiled by S&P Global showed.

Recruitment consultancies registered further decline in hiring but both permanent placements and temp billings decreased at softer rates, the KPMG/REC Report on Jobs said.