Tensions in the Middle East Cause European Shares to Dip
European shares fell on Tuesday amid escalating tensions between Iran and Israel, causing investors to shy away from risk assets. Despite previous gains, the pan-European STOXX 600 index dropped by 0.7%. Rising oil prices impacted various sectors, with energy shares seeing gains but banks leading declines.
On Tuesday, European shares suffered a setback as tensions between Iran and Israel heightened, causing regional instability and pushing investors to retreat from risk assets.
The STOXX 600 index decreased by 0.7% to 543.26 points after breaking a five-day losing streak earlier. Despite U.S. President Donald Trump's early departure from the G7 summit, concerns persisted regarding potential oil market disruptions due to Middle Eastern tensions.
Energy shares rose by 1% as oil prices increased, while most sectors, notably banks, witnessed declines. Investors are additionally troubled by Trump's tariff policy's impact on global growth. Meanwhile, shifts from U.S. to European assets have been apparent, influenced by structural and policy changes.
(With inputs from agencies.)
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