European shares open lower as oil gains, rate fears weigh on sentiment

Here is how European markets are performing at the start of trading on the new day and week:

• Eurostoxx -0.1%
• Germany DAX -0.2%
• France CAC 40 -0.1%
• UK FTSE -0.1%
• Spain IBEX -0.1%
• Italy FTSE MIB +0.2%

The subdued mood persists even after a strong technology-led session in Asia, with investors facing another rise in oil prices, relatively hawkish central bank outlooks, and ongoing US-Iran tensions.

WTI crude is currently up 0.5% at $91.95, while Brent crude has gained 0.8% to $97.05. This follows further strikes between the US and Iran near the Strait of Hormuz, with Iran also preparing restrictions along the waterway.

Early moves are modest and tempered by mixed signals from US futures. S&P 500 futures are flat, Dow futures are down 0.4%, and Nasdaq futures have gained 0.2%. US cash markets are closed for Labor Day, which will further limit any directional push for European sentiment.

At this stage, the key concerns mentioned above are counterbalancing the positive signals from tech gains at the start of the week.

Bigger events lie ahead, with the ECB policy decision due on Thursday and the US CPI report on Friday.