European Stocks Dip Amid Middle East Tensions and Fed Decisions
European shares fell due to ongoing Middle East tensions, notably between Israel and Iran. U.S. involvement fears kept markets uneasy. Energy stocks rose on higher oil prices. The U.S. Federal Reserve kept interest rates stable, with upcoming decisions expected from Switzerland, Norway, and the UK. Stora Enso's stock surged on strategic plans.
European stock markets opened lower on Thursday as investors remained cautious due to escalating tensions in the Middle East. The ongoing aerial conflicts between Israel and Iran have stirred uncertainty about potential U.S. military involvement, affecting investor confidence across the continent.
Oil prices rose as the conflict intensified, benefiting the energy sector, which was the sole gainer amidst an otherwise declining market. In the U.S., the Federal Reserve's decision to maintain interest rates was followed by warnings of anticipated inflation due to planned import tariffs under the Trump administration.
Several central banks, including those in Switzerland, Norway, and the UK, are anticipated to announce their interest rate decisions today. In corporate news, Finnish forestry firm Stora Enso saw a notable 15% jump in its stock price after announcing a strategic review of its Swedish forest assets.
(With inputs from agencies.)
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