
European stock markets have suffered a massive loss of 918 billion euros in just one week, as a result of high tensions and the outbreak of conflict in the Middle East, particularly the ongoing US-Israeli war against Iran.
The pan-European STOXX 600 index, which covers 600 major companies listed on European stock exchanges, has fallen sharply during this period, reaching one-month lows. In today's session, the index lost about 1% and traded at 598.69 points, after a series of days of strong selling.
The loss of market capitalization of 918 billion euros reflects investor panic about the global economic consequences of the conflict: a sharp increase in oil prices, concerns about energy supplies after the effective closure of the Strait of Hormuz, high inflation risk and uncertainty about economic growth in Europe.
During the week, the STOXX 600 has suffered a cumulative decline of about 5%, which represents the biggest weekly loss since the spring of last year. The hardest-hit sectors have been banks, insurance, airlines and tourism, while defense and energy stocks have made relative gains.
Analysts point out that fears of a prolonged war in the Middle East, combined with rising energy prices and uncertainty about the ECB's monetary policy, have pushed investors towards massive sales. Although there have been days of slight recovery, the overall trend remains negative and markets remain very sensitive to any new military developments.
This is the heaviest blow to European markets since the start of the conflict with Iran, highlighting the continent's economy's high dependence on the stability of energy prices and global supply chains.
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