European shares dip as banks hit over 3-month low, oil prices weigh

European shares fell on Thursday as banks slid to a more ‌than three-month low, while a fresh bond selloff and elevated oil prices stoked fears that higher inflation could hurt economic growth.

The pan-European STOXX ‌600 index was down 0.9% to 624.24 points, as of 0723 ‌GMT. European banks dropped nearly 2%, with Deutsche Bank , Banco Santander, Societe Generale and Unicredit all falling for a second day as euro zone bond yields climbed ⁠towards ​their recent peaks.

Oil ⁠prices climbed more than 3% on persistent concerns about supply from the key Middle ⁠East producing region, while a hurricane threat to US offshore operations prompted production ​cuts. Minutes from the Federal Reserve's latest policy meeting showed officials were ⁠divided over the case for further rate hikes. Attention now turns to Europe, where ⁠markets ​will parse the European Central Bank's latest meeting accounts for clues on the policy outlook.

Several ECB and Fed officials are ⁠scheduled to speak later in the day, alongside Bank of England Governor ⁠Andrew Bailey. Among ⁠individual stocks, Bavarian Nordic gained 2.9% after the Denmark-based biotechnology firm raised its 2026 revenue guidance and EBITDA ‌margin forecasts.