FX.co ★ European Shares Retreat from Records

European stocks opened March on a weak footing, pulling back from the record highs reached last week, as rising tensions with Iran triggered a broad risk-off shift across global markets. The STOXX 50 dropped nearly 2%, while the STOXX Europe 600 declined 1.7%, underscoring a widespread equity sell-off. The downturn followed a series of US and Israeli strikes on Iran and subsequent retaliatory attacks by Tehran on regional targets, amplifying geopolitical uncertainty. With the conflict driving energy prices sharply higher, all sectors fell except oil and gas. European natural gas prices jumped more than 20%, lending support to energy shares. In contrast, consumer discretionary, financial, and technology stocks led the losses, absorbing the bulk of the market pressure.