Europe midday: Shares mixed, oil rises on report of more US troops to Gulf

(Sharecast News) - European shares were mixed in cautious trade and oil prices rose on Wednesday as traders assessed a report that more US troops were being sent to the Gulf despite President Donald Trump's claims that peace talks with Iran could resume soon.

The pan-regional Stoxx 600 was flat at 1146 BST. Germany's DAX and Italy's MIB made small gains, but France's CAC 40 fell 0.57% after consumer prices in France rose 2.0% year-on-year in March slightly above analysts' expectations and a preliminary reading of a 1.9% rise published earlier this month.

Oil prices were on the rise again on a report that the US is sending "thousands" more troops to the Middle East. According to the Washington Post, the move is to put pressure Iran into agreeing a deal, but US officials have also said they are considering the possibility of additional strikes or ground operations if the ceasefire does not hold.

Brent crude was up 2% to $96.71 a barrel, while West Texas Intermediate fell 1.93% to $93.

In an interview with US broadcaster ABC Trump said: "I think you're going to be watching an amazing two days ahead."

"It could end either way, but I think a deal is preferable because then they can rebuild ...They really do have a different regime now. No matter what, we took out the radicals."

In equity news, luxury stocks were under the pump as wealthy Middle Eastern shoppers shunned European travel due to the Iran conflict.

Shares in Hermes tanked as the French luxury group said the war hit sales in the Middle East and Europe. Kering shares fell after sales of its Italian flagship brand Gucci slumped 8% in the first quarter - the 11th straight quarterly decline. Richemont and Burberry also declined.

Stellantis jumped as the Franco-Italian automaker said global shipments rose 12% year-on-year in the first quarter to an estimated 1.4 million vehicles.

On the economics front, industrial production across the eurozone rebounded in February after two months of declines, though the output of powerhouses Germany and France both weakened.

Seasonally adjusted industrial production increased by 0.4% in the single-currency region in February, following a 0.8% drop in January and a 0.6% fall in December.

This was ahead of the consensus forecast for a gain of 0.3%, though production was still 0.6% down on last year.

Reporting by Frank Prenesti for Sharecast.com