European markets started the week lower, reacting swiftly to recent missile attacks in the Middle East involving U.S. President Donald Trump and Israeli Prime Minister Benjamin Netanyahu. Hence, European stock markets experienced sharp declines this morning.
Specifically, the STOXX Europe 600 fell 1.66% at the open. In Paris, the CAC 40 dropped 1.92%, while Milan’s FTSE MIB declined more sharply, down 2.26%. In Germany, the DAX lost 2%, and Spain’s IBEX 35 recorded the largest drop at 2.95%. London’s FTSE 100 fell more moderately, down 1.03%.
However, as often happens during times of geopolitical tension, the defense sector benefited from the crisis. The Italian aerospace company Avio rose 8.4%, the British BAE Systems gained 6.8%, Swedish fighter jet maker Saab climbed nearly 7%, while Italy’s Leonardo and Germany’s Renk both advanced over 6%.
Finally, crude oil also surged, with prices jumping more than 8% on Sunday amid fears of major supply disruptions. Airline stocks were particularly affected, suffering heavy losses due to airport closures and airspace restrictions in the Middle East.
Benedetta Zimone