European markets lower after fifth straight week of gains

Amrita Sen, founder of Energy Aspects, says that means "energy demand is actually going to be coming off a bit."

The major averages opened higher Monday.

The Dow Jones Industrial Average rose 35 points, 0.1%. The S&P 500 gained 0.3%, and the Nasdaq Composite added 0.2%.

— Sarah Min

Oil prices and shipping shares were higher in early afternoon European trade as a slew of firms suspended travel along the Red Sea and Suez Canal, which usually carries around 30% of global container trade.

BP on Monday became the first oil major to announce it would halt its transit through the route as a safety precaution, as Houthi militants continue to target ships with drones and missiles from Yemen. Shares were 2.3% higher at 1:40 p.m. in London.

Oil prices gained on the potential for supply disruptions.

Shipping giants including MSC, Hapag-Lloyd, CMA CGM and Maersk, along with several Asia-based firms, have also said they will reroute from Suez Canal route to the lengthier Cape of Good Hope route around the south of Africa.

Shares received a boost, as analysts said the geopolitical tensions may reverse the recent trend of oversupply in the market and drive up freight rates.

"The potential implications for ocean freight rates and ocean carriers' profitability will depend on the duration of the disruption," analysts at UBS said in a note.

They added that the Cape of Good Hope route reduces an Asia-Europe trip's effective capacity by 25%, and that a large part of Asia-Europe long-term contracts will be negotiated inthe coming months, which "may allow the carriers to lock in higher than expected rates - if the disruptions persist."

Hapag-Lloyd shares were 7% higher, while Maersk traded up 2.6%.

— Jenni Reid

The pan-European Stoxx 600 hovered around the flatline by early afternoon, having recovered opening losses. Oil and gas stocks added 1.1% as oil prices rose on the back of Red Sea concerns. Construction and material stocks fell 1.2%.

Oil prices climbed on Monday as BP became the latest global company to halt travel through the Suez Canal following a series of attacks on vessels by Houthi militants from Yemen.

International benchmark Brent crude was up more than 0.6% at around $77 per barrel by early afternoon in Europe.

Shipping giants MSC, Hapag-Lloyd, CMA CGM and Maersk have all suspended travel through the Red Sea due to an ongoing drone threat, and BP said in a statement on Monday that it would keep its "precautionary pause under ongoing review, subject to circumstances as they evolve in the region."

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- Elliot Smith

German business sentiment showed a surprise fall in December, the Ifo institute's business climate index showed on Monday.

The index came in at 86.4 for this month, below the 87.8 consensus forecast among analysts polled by Reuters, and down from a revised reading of 87.2 in November.

- Elliot Smith

Shares of Dutch chemical and fertilizer manufacturer OCI jumped more than 10% in early trade to lead the Stoxx 600 after agreeing to sell its stake in Iowa Fertilizer Company to Koch AG & Energy Solutions for $3.6 billion.

Vodafone shares climbed more than 6% after Iliad Group proposed a merger of the two companies' Italian businesses in a deal valuing Vodafone Italia at 10.45 billion euros ($11.38 billion).

At the bottom of the European blue chip index, Nordnet shares fell 4.8%.

- Elliot Smith

European markets opened in negative territory on Monday.

The pan-European Stoxx 600 was down 0.3% in early trade, with construction and material stocks shedding 1.1% to lead losses while the health care sector nudged 0.3% higher.

Britain's FTSE 100 is seen around 16 points lower at 7,560, Germany's DAX is set to shed around 33 points to 16,718 and France's CAC 40 is expected to drop around 18 points to 7,579, according to IG data.

Jefferies is "poised to pounce" on several global stocks as it looks ahead to the new year, giving three stocks more than 60% upside potential.

Those stocks, which are among its "top picks for 2024," include companies with strong cash flows and attractive risk-reward ratios, the investment bank's analysts wrote in a Dec. 7 equity research note.

Jefferies is bullish on three stocks — giving three over 60% upside.

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— Amala Balakrishner

As financial markets continue rallying, UBS has named the "most crowded short" across all sectors and global markets.

Crowded trades refer to a situation in which a large number of investors hold similar views and concentrated positions on certain stocks or markets.

Nearly one in five shares of the most shorted European stock tracked by UBS were used to bet on a price decline.

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— Ganesh Rao