Europe open: US treasury sale, Iran blockade threat weigh on sentiment

(Sharecast News) - European shares were mixed on Friday as investors assessed the latest US treasury auction and threats from Washington to blockade Iran.

The benchmark Stoxx 600 index was down 0.03% to 659 at 0824 BST. Germany's DAX 0.63% while UK, Spanish and Italian shares fell.

European equities were also pressured by a weak longbond auction in the US, where a $25bn sale of 30year treasuries cleared at a hefty 5.216% yield, the highest since 2001.

The result underscored investor unease over US inflation risks and the country's swelling debt load, adding to the cautious tone across continental markets already grappling with geopolitical tensions and elevated energy prices.

Oil prices were on the rise again after the US threatened an indefinite naval blockade of Iran, renewing worries about supply of crude, adding to concerns about a weaker outlook for demand and a large build in US stocks. Brent crude rose 1.48% to $88.36 a barrel.

"Watch this space for more announcements coming next week because we are going to apply measures like have never been seen in the history of economic isolation of a country," Treasury Secretary Scott Bessent on Thursday told the right wing Newsmax's cable channel.

In equity news, shares in VZ Holding jumped as the Swiss company posted better than expected first half revenue.

Reporting by Frank Prenesti for Sharecast.com