European markets decline due to Middle East tensions

euronews.com

European markets opened lower on Wednesday morning due to rising tensions in the Middle East. Major healthcare and tech companies like GSK and Siemens faced losses. The FTSE 100 in Britain dropped by 0.3%, with losses from Compass Group and Flutter Entertainment. Germany's DAX index also fell by 0.3%, influenced by Siemens and Deutsche Bank. France's CAC 40 index decreased by 0.2%, while the STOXX 600 index slid by 0.3%. In the Middle East, Israel conducted a significant strike on Gaza, heightening concerns following its ceasefire with Hamas earlier this year. Meanwhile, Russian Prime Minister Vladimir Putin rejected a proposed ceasefire in Ukraine, creating further uncertainty in the markets. Investors reacted to statements by US President Donald Trump about upcoming tariffs set for April 2. Market analysts noted that traders are pausing to assess future central bank decisions, including the US Federal Reserve's upcoming interest rate decision. Kyle Chapman from Ballinger Group commented on the challenges of predicting economic conditions amid these tensions, suggesting that the Fed might prefer to delay its decision. Asian markets experienced mixed results. Japan’s Nikkei 225 fell by 0.3% after the Bank of Japan kept interest rates steady. Analysts from Pantheon Macroeconomics indicated concerns about US tariffs impacting Japan. China's Shanghai Composite Index also dipped by 0.1%, while Hong Kong's Hang Seng index rose slightly by 0.1%. Australia's S&P/ASX 200 index decreased by 0.4%, while South Korea’s Kospi index saw a gain of 0.6%. In the US, stocks pulled back after a short recovery, with the S&P 500 and NASDAQ 100 both dropping. Key companies like Royal Caribbean Cruises and Tesla weighed heavily on the indices. In commodities, US crude oil prices fell by 0.4%, and Brent crude followed suit. However, gold prices reached a new high, increasing by 0.3% as investors sought safe assets amid the geopolitical unrest. The euro weakened against the dollar but gained against the British pound.


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