FX.co ★ European Stocks End the Week with Sharp Losses

On Friday, the STOXX 50 fell by 1.4%, and the STOXX 600 decreased by 1%, marking both indices closing at nearly one-month lows. This decline was spurred by escalating geopolitical tensions in the Middle East, prompting a widespread shift towards safer assets. Israel carried out a series of strikes targeting Iran's nuclear infrastructure and military facilities, resulting in the deaths of two senior Iranian commanders. Israel has warned of further operations, while Iran has promised retaliation and has already launched drones toward Israeli territory. The automotive sector was among the hardest hit, with drops seen in companies such as Stellantis (-3.4%), Ferrari (-2.8%), Mercedes-Benz (-1.6%), and BMW (-1.9%). Conversely, stocks in oil, gas, and defense sectors saw gains amid increased security threats and rising energy prices, with notable performances from Shell (0.8%), Eni (1%), RWE (1%), Rheinmetall (2.7%), and Thales (0.4%). Over the week, the STOXX 50 decreased by 2.6%, while the STOXX 600 dropped by 1.7%.