European markets ended mixed, with the FTSE 100 falling in London as declines in mining stocks weighed on the index. By contrast, the mid-cap FTSE 250 posted a modest gain, while uncertainty continued to simmer across European markets amid higher oil prices and geopolitical tensions.
London equities ended mixed, with declines in mining stocks driving the FTSE 100 lower. For the week, the FTSE 100 fell 1.38% and the FTSE 250 rose 0.12%, while the FTSE 350 Mining Index declined sharply. Shares in copper major Antofagasta fell 4.6%, affected by lower copper prices and uncertainty over its production outlook.
Silver Lake, a major US private equity firm, was reported to be in talks over the acquisition of Workday, prompting a reaction in software and data-related companies. RELX, Experian and Sage Group were among the gainers. Meanwhile, reports on the Bank of England's chief economist's views suggested the possibility of a rate hike, affecting investor sentiment.
European equities generally extended their declines. The STOXX Europe 600 fell 0.36% for the week, although it remained near its highs and had risen by around 3% in the four weeks since early August. Elevated oil prices and geopolitical tensions remained a drag. The US-Italy tensions over the Strait of Hormuz prompted a modest rise, while views that expectations of further ECB rate hikes would strengthen became more widespread.
In European bond and foreign exchange markets, long-term yields rose as tensions over the Strait of Hormuz continued. The yield on Germany's 10-year government bond rose 5bp to 3.19%, while the 2-year yield was around 2.79%, reflecting the move over the two-year period. The dollar/euro and euro/yen exchange rates were also at late-session levels.