European Shares Open Mixed as Oil Rebound and US-Iran Talks Weigh

Markets adopted a more guarded tone at the opening bell:

• Eurostoxx +0.2%
• Germany DAX -0.3%
• France CAC 40 flat
• UK FTSE -0.1%
• Spain IBEX -0.1%
• Italy FTSE MIB -0.4%

European shares opened on a mixed note following Monday's sharp recovery, while the STOXX 600 remained nearly flat. The main change from the previous session is a bounce in oil, with Brent crude climbing back above $101 as market participants assess the potential for US-Iran discussions on the sidelines of the UN General Assembly.

This has dimmed some of the glow from Monday's relief rally, which had been fueled by declining oil prices and lower bond yields, pushing risk assets higher.

Germany stood out as the weakest among the main regional bourses. Deutsche Bank drew attention following a report that its DWS asset management division is weighing steps to curb redemption pressure at German property funds.

US futures also showed a more cautious tone, with S&P 500 futures flat and Nasdaq futures trimming their earlier small gain to edge down 0.1%. Nonetheless, the US backdrop remained fairly positive after Monday's technology-driven surge, which saw the Nasdaq close at a record high.

Underlying risk appetite continues to be underpinned by tech strength and expectations of diplomatic advances in the Middle East. However, at the start of trading, the recovery in oil and bond yields is limiting the ability of European equities to extend Monday's advances.