European Stocks Drop After Israel Attacks Iran’s Nuclear Sites
European equities fell on Friday as Israel launched waves of military strikes against Iran’s nuclear program and ballistic-missile sites, spurring big moves across energy stocks and airlines as oil prices jumped.
The Stoxx Europe 600 Index was down 1.1% by 8:10 a.m. in London. S&P 500 futures also tumbled 1.4% as the attacks sparked risk-off moves across the world.
A spike in Brent to over $78 a barrel saw energy stocks in Europe jump 1.2%. Airlines including British Airways-owner IAG SA and Germany’s Deutsche Lufthansa SA fell due to worries over higher jet fuel prices.
The escalation in the Middle East boosted defense stocks, further cementing the group as Europe’s top-performers so far this year. Rheinmetall AG gained 1.8% and BAE Systems Plc rose 2.8%.
“We brace for a volatile day, we’ll probably be closing in the red,” said Vincent Juvyns, chief investment strategist at ING, adding that he expects havens such as the dollar, treasuries and gold to rise.
Source: Bloomberg
