European Stock Markets Plunge, US-Iran Conflict Shakes Up
European stock markets closed sharply lower on Wednesday (July 8th) after the conflict between the United States and Iran escalated. Market sentiment worsened as oil prices surged more than 7%, following the growing risk of shipping disruptions in the Strait of Hormuz.
US President Donald Trump said the United States would likely strike Iran again after declaring the ceasefire over. This statement came after Iran allegedly attacked commercial vessels in the Strait of Hormuz, which is now reportedly closed to maritime traffic again.
The Stoxx Europe Index fell 1.7%, Germany's DAX fell 2.3%, the UK's FTSE 100 fell 1.6%, France's CAC 500 fell 2.3%, and the Swiss Market Index fell 1.4%. This decline indicates investors are starting to reduce risk amid concerns that the Middle East conflict could depress the global economy.
On the corporate side, AstraZeneca is in the spotlight after signing a deal worth up to US$2.1 billion with Chia Tai Tianqing Pharmaceutical, a unit of Sino Biopharmaceutical. The agreement covers the development, production, and commercialization of the chronic respiratory disease drug candidate TQC3721 outside China. However, AstraZeneca shares fell 1.1% in London.
BHP shares also fell 4.3% after workers at Port Hedland, Western Australia, planned to strike next week over wages and working conditions. The strike could disrupt operations at a key iron ore facility and threaten revenues of around US$120 million.
In the banking sector, Banco Santander fell 5.1% in Madrid after reportedly overhauling its Asia-Pacific corporate and investment banking business and cutting operating costs. Meanwhile, GSK fell 1.7% after expanding its partnership with Chia Tai Tianqing in China, and Sanofi fell 0.7% after offering commitments to the European Commission regarding competition concerns in its flu vaccine campaign. (arl)
Source: Newsmaker.id
