European Stocks Decline as Middle East War Enters Third Week
The STOXX 600 fell for a fourth session as Middle East conflict disrupted energy. Investors await bank updates while Commerzbank rose on a new stake bid.
European equity markets retreated on Monday as investors grappled with the economic implications of the ongoing Middle East conflict, which has entered its third week. The pan-European STOXX 600 index slipped 0.3% to 593.58 points, marking its fourth consecutive day of losses. This decline follows a broader trend where the index has shed more than 6% since reaching a record peak in February, prior to the escalation of the conflict involving the United States, Israel, and Iran.
In Germany, Commerzbank AG was a notable outlier, with its shares rising 1.4%. The gain came after the Italian banking giant UniCredit S.p.A. launched a bid to increase its stake in the lender. While UniCredit already maintains a 26% equity stake and additional exposure through return swaps, its own shares fell 2.2% in Italy as the bank indicated it does not currently expect to seek full control. Despite the move in Commerzbank, the broader banking sector extended its three-week slump with a 0.6% decline on Monday, weighing heavily on the European benchmark.
