European stocks close lower amid Middle East tensions

By Mucahithan Avcioglu

ISTANBUL (AA) - European stock markets ended Thursday’s trading session lower as ongoing geopolitical tensions in the Middle East weighed on investor sentiment.

The benchmark Stoxx Europe 600 index fell 1.29% to close at 604.83 points.

National indices also posted losses. Britain’s FTSE 100 declined 1.45% to 10,413.94, while Italy’s FTSE MIB 30 dropped 1.61% to 44,608.55

France’s CAC 40 slipped 1.49% to 8,045.8, and Germany’s DAX 40 fell 1.61% to 23,815.75.

The euro/dollar exchange rate was down 0.45% at 1.158 as of 1820GMT.

Equity markets remained under pressure on the sixth day of attacks by the US and Israel on Iran, with investors closely monitoring developments in the Middle East conflict.

Meanwhile, reports said German automaker Volkswagen is evaluating the possibility of producing military vehicles at its Osnabruck plant in Germany.

Separately, Bundesbank President Joachim Nagel warned that a prolonged war in the Middle East could harm the eurozone economy, and could push inflation higher while slowing economic growth.

On the macroeconomic front, eurozone retail sales declined 0.1% month-on-month in January, while increasing 2% on an annual basis.