Flat Market Close Amid Oil Price Surge and European Luxury Stock Decline

European shares ended Monday nearly unchanged, constrained by a drop in luxury stocks, as stalled U.S.-Iran negotiations raised oil prices, adding to global uncertainty. The European Central Bank may adjust interest rates if inflation worsens. Miners and Delivery Hero saw significant gains, offsetting some losses.

On Monday, European shares recorded a flat session, with the pan-European STOXX 600 closing at 612.79 points. Luxury stocks fell 3.4%, weighed by global demand uncertainties and the ongoing Middle Eastern conflict, impacting stocks like LVMH and Burberry.

The stalemate in U.S.-Iran peace talks caused oil prices to spike, exacerbating concerns over high energy costs and their impact on inflation and growth across energy-lean Europe. Despite the uncertainty, miners, boosted by rising metal prices, provided minimal relief.

ECB's Martin Kocher highlighted the potential for interest rate hikes to combat inflationary pressures. In corporate news, Delivery Hero's shares soared over news of a stake sale, and Airtel Africa saw a share price jump after its parent company announced plans to restructure its subsidiary's shareholding.