PARIS (Reuters) – European markets decline at the opening on Monday, under pressure from the conflict between Israel and Hamas and before the publication of key indicators this week.
In Paris, the CAC 40 fell 0.83% to 7,001.33 points around 07:35 GMT. In Frankfurt, the Dax lost 0.77%, compared to 0.51% for the FTSE in London.
The pan-European FTSEurofirst 300 index declined by 0.51%, the EuroStoxx 50 by 0.9% and the Stoxx 600 by 0.36%. New York index futures suggest Wall Street opening in the red, with the Dow Jones declining 0.72%, compared to 0.77% for the Standard & Poor’s 500 and 0.7% for the Nasdaq.
The Palestinian Islamist movement Hamas launched the largest attack against Israel in decades, triggering a response in the Gaza Strip, but also in southern Lebanon.
If the implications of the conflict on the markets remain limited for the moment, investors are worried about an extension of the war to other countries in the region, including Iran, and the impacts on the oil markets.
Furthermore, inflation in the United States is expected on Thursday, and could revive fears of a new rate hike from the Federal Reserve if it surprises on the rise.
Minutes from the Fed’s latest meeting will be released this week, along with the first quarterly results from U.S. companies, as investors look for catalysts for risky assets. Oil stocks are increasing in the wake of the rise in crude prices, with Brent gaining 2.81%. The oil sector index takes 1.43%, BP 2.33% and Shell 1.53%.
The rise in oil prices, on the other hand, weighs on airlines, some of which have suspended their flights to Israel. IAG, owner of British Airways, yields 5.5%, Air France 4.43%, Lufthansa 3.13%, Easyjet 5.56% and Wizz Air 7.43%.
(Written by Corentin Chappron, edited by Kate Entringer)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.