PARIS (Reuters) – The main European scholarships fell at the start of the session on Monday, investors evaluating the consequences of the direct involvement of the United States in the conflict between Israel and Iran.

In Paris, the CAC 40 folded up from 0.54% to 7,548.33 points around 7:10 a.m. GMT. The Dax in Frankfurt lost 0.56%, while the FTSE in London declines 0.2%.

The Eurostoxx 50 fell by 0.39% and the Stoxx 600 declines by 0.37%.

Donald Trump has announced that American bombers have struck three Iranian nuclear sites during the night from Saturday to Sunday, marking direct entry of the United States into the conflict.

Investors are preparing for a response from Iran which denounced “a serious violation of international law” on the part of the United States and has promised to defend themselves.

“The markets seem to consider the American strikes on Iran as a limited event for the moment, rather than as the beginning of a wider war,” said Charua Chanana, strategist at Saxo.

“The weakness of the flows to the refuges markets suggests that investors continue to think that it is a punctual escalation, and not a disruption of the oil supply or world trade,” she said.

Investors will also scrutinize the PMIs in the euro and Britain area expected at the start of the session.

At the values, the Stellantis shares listed on the Milan Stock Exchange were suspended after dropping 5.7% following the presentation of the new management team.

(Written by Bertrand de Meyer, edited by Augustin Turpin)

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