Geopolitical Tensions Shake European Markets

European shares took a hit on Friday, closing lower due to Israel's extensive military actions against Iran. The move triggered widespread market selloffs, prompting investors to gravitate towards traditional safe-haven assets as geopolitical tensions added to the existing trade uncertainties.

The STOXX 600 index declined 0.9%, touching its lowest point in three weeks and marking a fifth straight losing session. The Israeli military actions, targeting nuclear facilities and missile factories in Iran, exerted downward pressure on global risk assets while pushing investors towards the dollar and gold.

In the aftermath, European markets, particularly sectors like autos and travel, experienced significant losses. However, energy stocks saw gains amid fears of disruptions to Middle East oil supplies, and defense companies benefited from the evolving geopolitical climate, highlighting the complex market reactions to the unfolding events.

(With inputs from agencies.)