European stocks fell on the day as the military conflict in the Middle East showed no signs of slowing down, but stocks in the energy and defense sectors rose.
As of 08:12 Japan time, the European Stoxx 600 index was down 1.8% to 622.35 points, its lowest since mid-February and down from its all-time high hit last Friday, with most sectors declining.
Shares of major energy companies each rose more than 5%, and the energy index rose 3.5%, benefiting from a roughly 13% rise in oil prices due to the disruption of shipping in the crucial Strait of Hormuz due to Iran’s response to the US and Israeli attacks.
biggest decline
Shares in the travel and entertainment sector, which includes airlines and hotels, were the biggest losers, falling 4.4%, with Lufthansa shares down 11%, the Banks Index down 3.6% and the Insurance Companies Index around 2%.
Meanwhile, defense company stocks rose in the range of 5% to 8%, with the defense companies index rising 0.4% as the conflict escalated, boosting expectations for increased US defense spending.
European stocks fell on the day as the military conflict in the Middle East showed no signs of easing, but stocks in the energy and defense sectors rose.
By 8:12 a.m. Japan time, the Stoxx 600 European Index was down 1.8% to 622.35 points, its lowest since mid-February and down from its all-time high hit last Friday, with most sectors declining.
Shares of major energy companies rose more than 5% each and the energy index rose 3.5%, benefiting from a roughly 13% rise in oil prices after a shipping disruption in the crucial Strait of Hormuz due to Iran’s response to the US and Israeli attacks.
maximum decrease
Shares in the travel and leisure sector, which includes airlines and hotels, had the biggest decline, falling 4.4%, with Lufthansa’s shares falling 11%. The bank stock index fell 3.6%, and the insurance company stock index fell about 2%.
Meanwhile, stock prices of defense companies rose 5% to 8%, and the defense companies index rose 0.4%, as expectations for an increase in U.S. defense spending rose as the conflict escalated.
