Most major European stock markets opened lower on Monday as military clashes in the Middle East sparked a rush to safe-haven assets such as bonds and gold, while also boosting oil prices by over 3%.
The pan-European STOXX 600 index fell 0.2% by 0710 GMT, with chemical and travel & leisure sectors leading losses.
Global investors turned risk averse as military clashes between Israel and the Palestinian Hamas group deepened political uncertainty across the Middle East and raised concerns about oil supplies.
The energy index jumped 2.2% as oil prices rallied 3% to over $85 a barrel, keeping the broader market under pressure on concerns about elevated inflation.
European stock markets climb at open
Shares of European defence companies such as Sweden’s Saab, Italy’s Leonardo and Germany’s Rheinmetall rose in the range of 4.7% and 7.2% on the prospect of a prolonged military conflict in the region.
Airline stocks, including British-Airways owner IAG, Air France KLM and Lufthansa, fell between 2.7% and 4.8% on concerns about higher fuel costs.
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