Conflict between Iran and Israel worries markets in Europe and Asia

Conflict between Iran and Israel worries markets in Europe and Asia

Fears of an escalation of the conflict between Iran and Israel have unsettled markets in Europe and Asia. The stock exchanges in Switzerland and Europe recorded losses of between 0.5 and 1.2 percent, while Japan's leading index Nikkei 225 fell by more than 2.5 percent. The development comes near the end of an already difficult trading week, compounded by reports of possible Israeli attacks on Iran in response to a previous major attack. Current damage was not initially reported, adding to uncertainty about Iran's response.

Investors are concerned about the potential escalation of the conflict in the Middle East and the impact on further interest rate policy decisions in the US. This situation is seen as toxic for the stock markets, which have been struggling since the beginning of April. Although the oil price showed an initial increase, it has partially recovered. Nevertheless, the topic of inflation and the associated interest rate policy remains a hotly debated topic for the markets in Europe and overseas.

Amid the losses on various stock exchanges, Nestlé shares stand out as one of the few winners. The Swiss leading index SMI recorded a decline, with Nestlé benefiting from the strong figures from cosmetics manufacturer L'Oréal. Technology companies VAT and Logitech were among the biggest losers as chipmakers' quarterly results set negative expectations for the industry.

In Japan, fears of an escalation of the Middle East conflict led to significant losses on the stock market. The Nikkei 225 stock index fell 2.66 percent, while the Topix index fell 1.9 percent. Similar to Europe, Japanese suppliers to the semiconductor industry were severely affected. Despite these losses, analysts believe the weakness is temporary and markets could potentially respond positively to economic strength and corporate earnings starting in May.