European Stocks Fall Amid Rising Tensions in the Middle East
European stock markets opened sharply lower on Monday, impacted by escalating tensions and military conflict in the Middle East, which have directly influenced investor sentiment.
Main indices hit lowest level since mid-February
The Stoxx Europe 600 index dropped 1.7% to 623 points, marking its lowest level since mid-February.
France’s CAC 40 fell over 2% to settle at 8,404 points, while Germany’s DAX plunged 2.25% to 24,717 points. The UK’s FTSE 100 also declined by 0.75%, reaching 10,828 points.
Travel and Leisure sector sees the biggest decline
The travel and leisure sector, which includes airlines and hotels, reported the steepest drop of 4.4%. Lufthansa’s shares plummeted 11% following the announcement of an extension of its flight suspensions due to the situation in the Middle East.
Energy sector rises on the back of oil prices
Conversely, the energy sector index rose by 3.5%, bolstered by gains in major energy companies like Shell, BP, and TotalEnergies, each recording increases of over 5%. This uptick coincided with a surge in oil prices, which skyrocketed by 13% due to ongoing tensions and supply disruptions in the region.
