FX.co ★ Stocks in Europe Down Nearly 1%

On Friday, European stock markets turned negative, with significant declines observed in major indices. The STOXX 50 fell by 1.4%, while the STOXX 600 dropped by 1%, as escalating geopolitical tensions in the Middle East drove investors to seek safer assets. Israel initiated a series of strikes targeting Iran's nuclear infrastructure and military facilities, resulting in the deaths of two senior Iranian commanders. Israel has signaled the possibility of additional actions, while Iran has sworn to retaliate and has already dispatched drones toward Israeli territory. The travel and leisure sectors were among the hardest hit, whereas stocks in the oil, gas, and defense sectors saw gains, benefitting from increased security risks and rising energy prices. Notable decliners included Deutsche Bank, Unicredit, and Adidas, each experiencing a drop of 2.4% or more. Conversely, stocks such as Shell, Eni, Repsol, RWE, Rheinmetall, and Thales rose by over 1%. Over the course of the week, the STOXX 50 has decreased by 1.3%, and the STOXX 600 has seen a reduction of 0.7%.