SynopsisEuropean shares were little changed on Friday, with the STOXX 600 heading for a second straight weekly decline as rising bond yields and higher oil prices weighed on sentiment. Renewed Gulf tensions pushed Brent crude to a one-month high, reviving inflation concerns and complicating the outlook for global monetary policy.AgenciesEuropean shares were little changed on Friday and remained on course for a second straight weekly decline as renewed pressure in global bond markets weighed on sentiment, while rising oil prices fueled inflation concerns, Reuters reported.The pan-European STOXX 600 was up 0.06% at 650.79 points as of 0705 GMT. The index was still headed for a weekly loss as investors assessed higher borrowing costs and persistent geopolitical risks.Read more | Global Market: China stocks hold steady as investors await fiscal supportBond Market Pressure Weighs on SentimentU.S. Treasury yields resumed their climb after an intervention by the U.S. Treasury on Wednesday offered only temporary relief to a battered bond market. The renewed rise in yields added to pressure on equity markets by increasing borrowing costs and reducing the appeal of riskier assets.U.S. Treasury Secretary Scott Bessent indicated that the government could expand its Treasury buyback programme and also raised the prospect of fiscal consolidation. However, the measures failed to provide lasting support to the bond market.Reuters reported that the renewed weakness in government bonds remained a key factor weighing on European equities as investors continued to monitor the outlook for interest rates and inflation.Basic Resources Lead Sectoral GainsBasic resources stocks were among the strongest performers in Europe, gaining 1.3%. The sector benefited from a softer U.S. dollar, which helped lift gold prices.The move in commodities provided some support to mining and metals-related shares even as broader market sentiment remained cautious.Gulf Tensions Push Oil HigherOil prices added to inflation concerns after a diplomatic deadlock in the Gulf reduced optimism over an agreement to fully reopen the Strait of Hormuz, a critical route for global energy shipments.Brent crude climbed to a one-month high of $94.71 a barrel before giving up some gains as investors took profits.Reuters reported that the latest rise in oil prices was also linked to escalating tensions between Washington and Tehran. Bessent said the United States would pursue tougher sanctions against Iran, reinforcing concerns that geopolitical tensions could persist and disrupt energy markets.Higher crude prices have revived worries about inflation, potentially complicating the outlook for central banks that are seeking to balance economic growth with price stability.Investors Remain Focused on Inflation and RatesThe combination of higher bond yields, elevated oil prices and geopolitical uncertainty has left European equities vulnerable as investors assess the outlook for monetary policy.With the STOXX 600 heading for another weekly decline, markets are likely to remain sensitive to movements in government bond yields and energy prices, particularly if oil prices remain elevated for an extended period.Reuters said the renewed pressure across bond and energy markets underscored the challenges facing investors as they navigate inflation risks alongside geopolitical uncertainty.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless(You can now subscribe to our ETMarkets WhatsApp channel)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless