Major European Markets Close Flat As Oil Rally, Rate Hike Fears Weigh

Major stock markets in Europe closed little changed on Tuesday as rising oil prices amid escalating tensions in the Middle East fueled inflation concerns. Prospects of a rate hike by the European Central Bank this week contributed as well to the largely cautious mood in the markets.

Political uncertainty in Germany weighed as well on sentiment. In Germany, the far-right AfD achieved a historic win in a state election. Chancellor Friedrich Merz said he is “deeply shocked” by the overwhelming AfD election win. “Not only did something change in Saxony-Anhalt yesterday but throughout all Germany. It will have repercussions, including on the international stage.”