European shares subdued ahead of euro zone inflation data; focus on Middle East

European equities remained relatively stable on Thursday (August 13) as market participants awaited crucial euro zone inflation data, following an impressive earnings season. The Stoxx 600 index closed almost unchanged at 659.24 points, having retreated from its previous record highs. European companies are anticipated to achieve one of the strongest earnings seasons in years, with energy and materials sector profits buoyed by the conflict in the Middle East.

However, investor sentiment remained cautious due to the ongoing uncertainty surrounding the Middle East conflict, particularly the dispute between the US and Iran over control of the Strait of Hormuz, a vital waterway for global energy supplies.

Brent crude futures fell by 0.7% on Thursday, marking the first decline in seven days as concerns about weaker global demand and rising US crude inventories weighed on prices. The energy sector fell by 0.8%, while basic resources shares led the sectoral losses with a 3% decline, their steepest drop in over a month as precious metal and copper prices weakened.

Market participants are also looking ahead to the forthcoming euro zone inflation data, set to be released on Friday, which may provide insight into the European Central Bank's future monetary policy stance.

Despite the subdued market mood, some individual stocks performed well. Maersk, the Danish shipping group, surged by 9.4% after surpassing profit forecasts and raising its full-year earnings guidance for the second consecutive time, driven by higher freight rates and the Middle East conflict. Adyen, a Dutch payments firm, also led the gains, jumping 16.4% following an increased annual revenue growth forecast from its clientele, including Spotify and Microsoft.

Conversely, Swissquote, a Swiss financial and trading services provider, plummeted by 14% after missing first-half expectations, primarily due to weak cryptocurrency income.