European stock markets experienced a sharp decline on Friday as investors moved towards safer assets in response to Israeli airstrikes on Iran.
Decline in European Stock Indices
The STOXX 600 index in Europe fell by 1.45%, reaching 545.10 points by 08:56 GMT. This marks the fifth consecutive loss for the benchmark, indicating a weekly decline.
Market Impact of Conflict
Heightened geopolitical risks in the Middle East added to existing concerns over U.S. President Donald Trump's tariff policies. The travel and leisure sector dropped by 3.1%, with major carriers like IAG (parent company of British Airways), Lufthansa, and EasyJet seeing declines of 4.8%, 4.6%, and 4.3% respectively.
U.S. Treasury Yields Reaction
In line with these developments, U.S. Treasury yields fell. The yield on the benchmark 10-year Treasury dropped by two basis points to 4.351%. Longer-dated securities also showed a similar downturn.
Investors are closely monitoring the developments in the region and any potential policy moves from Washington that could affect global trade and market sentiment.
