European stocks stabilize, but still pressured by Middle East tensions

European stocks steadied on Monday ahead of earnings reports and an expected European Central Bank monetary policy meeting during the week, but tension in the Middle East kept investors on edge.

The European STOXX 600 index rose 0.1 percent by 0703 GMT, after falling more than three percent in the previous week.

Geopolitical concerns affected sentiment, with Washington warning of a major threat to American interests in the Middle East, while pressures increased due to a jump in government bond yields.

Among the main moving stocks on Monday was Philips, which rose 1 percent as the Dutch health technology company raised its forecasts for the full year.

Indivior shares jumped 6 percent after the drug company said it would pay $385 million to settle a lawsuit.

Limiting the gains, energy stocks fell 0.8 percent, tracking the decline in crude oil prices.

During the week, investors will follow the earnings of major US technology companies such as Microsoft and Alphabet, while the European Central Bank’s interest rate decision on Thursday will also be in focus.