European markets were mixed Thursday morning, as investor sentiment was curbed by the threat of imminent U.S. military action in Syria.
The pan-European Stoxx 600 was around 0.1 percent higher during early morning deals, with sectors and major bourses pointing in opposite directions.
Oil and gas stocks led the gains, up almost 0.5 percent amid elevated Middle East tensions. London-based offshore contractor Subsea 7 was the top performer in the sector after RBC Capital Markets upgraded its stock recommendation to "perform" from "underperform." Its shares were over 2 percent higher on the news.
Meanwhile, basic resources stocks were off by over 0.5 percent. Imerys was the worst performer in the sector after its U.S. unit, Imerys America Talc, and Johnson & Johnson were ordered to pay $117 million in damages by a New Jersey state court on Wednesday. The jury ordered the companies to pay punitive damages to a man who said he had developed cancer due to his exposure to asbestos in talc-based products. Shares of Imerys were down 2 percent on Thursday.
Looking at individual stocks, Carrefour slumped towards the bottom of the European benchmark after the French food retailer reported weaker-than-anticipated figures for the first quarter. Its shares were off almost 5 percent, notching their lowest level since October 2012, after a slowdown in sales during the first three months of 2018.
Meanwhile, British gambling technology firm Playtech announced Thursday it had agreed to buy a 70.6 percent stake in Italian betting and gaming firm Snaitech for 846 million euros ($1.05 billion), Reuters reported. The move was thought to source most of Playtech's revenue from regulated markets. Shares of the London-listed stock were more than 9 percent higher.
Oil prices notch 2018 highs
In an incendiary tweet Wednesday, President Donald Trump said Russia should "get ready" for missiles to be fired into Syria. The U.S. president appeared to taunt the Kremlin for its support of Syrian President Bashar Assad, following a suspected chemical attack in the war-torn nation over the weekend. Both Damascus and Moscow have denied any responsibility. Trump's comments elevated fears of a direct conflict over Syria with the two world powers backing opposing sides.
Meanwhile, heightened geopolitical tension in the Middle East prompted oil prices to surge to 2018 highs. Brent crude futures traded at $72.18, up 0.2 percent on Thursday morning, while WTI rose 0.4 percent to $67.10 — a level last seen in December 2014.
Back in Europe, euro area industrial production data for February are due to be released at around 10 a.m. London time.
On the corporate front, London-listed stock WH Smith is due to publish its latest interim results on Thursday morning.
