Shaky Markets: European Shares Hit One-Month Low Amid Middle East Tensions
European stock markets dropped to a month-long low due to Middle East tensions and trade uncertainties involving the U.S., impacting energy prices and investor confidence. The STOXX 600 fell for the third day, while sectors like healthcare and utilities remained positive. Central banks reacted with interest rate changes to stabilize conditions.
On Thursday, European shares fell to their lowest point in over a month, driven by escalating tensions in the Middle East and looming concerns over potential U.S. military involvement, causing apprehension among investors.
The pan-European STOXX 600 declined by 0.8% for the third consecutive day. While energy stocks surged due to rising crude oil prices, other sectors like travel and leisure bore the brunt of the turmoil.
Amid these challenges, central banks are scrambling to adjust. The Swiss National Bank cut interest rates to zero, and Norway made an unexpected rate reduction. Meanwhile, the Bank of England maintained its rates as they observed vulnerabilities in the labor market and escalating energy prices.
(With inputs from agencies.)
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