European shares were steady at the opening bell as market attention stayed fixed on recent developments in the Middle East and the near-term outlook for energy markets.
The pan-European STOXX 600 index rose 0.1% to 622.68 points by 0708 GMT, reflecting a cautious tone among investors as crude markets reacted to a pause in hostilities.
Crude oil prices pared almost all of the gains from the previous session after Iran and Israel halted attacks on each other following an appeal by U.S. President Donald Trump. Even so, traders remained wary: diplomatic talks to date have not produced a durable ceasefire, and the Strait of Hormuz - a critical shipping lane for global oil flows - remains closed, keeping a premium on geopolitical risk in energy markets.
Inflation concerns continued to influence interest-rate expectations in Europe. Markets have priced in a 25-basis-point interest-rate increase by the European Central Bank at its meeting on Thursday, but attention is firmly on the subsequent path of monetary policy rather than the single move itself.
Sector action was uneven at the open. Healthcare stocks were the weakest cohort, declining 0.8% overall. Within the sector, GSK shares slipped 2% after the British drugmaker agreed to acquire U.S.-listed cancer drug developer Nuvalent in a deal valued at $10.6 billion.
Technology stocks outperformed, rising 0.9% as global AI-related names — which had been under pressure following a strong run higher — showed signs of stabilising. Banks also saw pockets of strength: UBS gained 1.5% amid a Reuters report that Swiss lawmakers are considering a new proposal to ease capital requirements on the lender, a move that could reduce the regulatory burden by billions of dollars.
Overall, the market opened with a cautious, measured tone as investors balanced easing oil prices with unresolved geopolitical risk and an evolving monetary policy outlook.