European Stock Markets Recover from Concerns over Middle East Conflict
Investors were once again on edge on Friday due to the latest developments in the Middle East, with reports of Israel attacking Iran in response to a prior major attack. Despite no initial reports of damage, fears of a conflict in the region and uncertainty surrounding U.S. interest rate policy continued to affect the stock market.
Throughout the day, European stock markets showed signs of stabilization as both Iran and Israel appeared to be attempting to de-escalate tensions. However, concerns about inflation and interest rate policies persisted, remaining a focal point for markets in Europe and overseas.
As the day progressed, European stock markets recovered from their morning losses, easing concerns about a potential escalation of the conflict between Iran and Israel. While major European stock indexes showed improvement, technology companies and chip manufacturers faced losses. Overall, the market remained cautious as technology companies prepared for what could be a challenging earnings season.
In Japan, fears of an escalating conflict in the Middle East caused significant declines in the Nikkei 225 index, impacting stocks of Japanese suppliers to the semiconductor industry. However, stocks of logistics companies rose as investors anticipated higher freight rates in the event of a war. The record-breaking streak in Japan came to a temporary halt as Korean and other Asian stock exchanges also saw losses due to similar concerns.