European Stocks Extend Losses Amid Global Sell-Off, Mideast Tensions

Alanbatnews -

European stocks continued their decline on Tuesday, pressured by a global sell-off and investor concerns over the potential for a prolonged conflict in the Middle East. Rising oil prices, exacerbating fears of higher living costs, also weighed on market sentiment.

The pan-European STOXX 600 index fell 1.3% to 615.72 by 08:04 GMT, after closing on Monday at its lowest level in more than two weeks. Utilities and banking sectors led the decline, each falling by 2.6%. The energy sector, however, saw a slight increase, building on gains from the previous session.

The potential for a protracted conflict is amplifying concerns about inflationary pressures and slower economic growth in the Eurozone, according to European Central Bank chief economist Philip Lane, who spoke to the Financial Times.

Geopolitical anxieties were further stoked by statements regarding the Strait of Hormuz. A Revolutionary Guard official reportedly stated the strait was closed and any ship attempting to pass would be targeted, potentially driving up global oil and gas shipping costs.

On the corporate front, shares of Thales rose 0.7% after the French aerospace and technology company announced annual core earnings that slightly exceeded expectations.