European actions fell to the lowest level in almost a month on Tuesday, with the escalation of the conflict between Iran and Israel entering its fifth day.
The Pan-European Stoxx 600 index closed down 0.85%, to 542.26 points, with the risk appetite impaired by geopolitical tremors that sacrifice the region.
The relief on Monday in relation to a previous settlement was short-lived, with the index returning to negative territory after ending the day before, a sequence of five loss sessions.
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Markets are nervous, according to the confrontation between Iran and Israel, triggered by Israel’s attack on Friday to Iranian nuclear facilities, threatens the Middle East, a rich oil region, a critical point.
Although problems have not yet arisen in commodity supply, the mere threat of the conflict leaves markets on the maximum alert.
Oil prices climbed, boosting the energy sector to the highest level in almost three months. This was the only sector, together with the real estate, to close in the positive territory.
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“The biggest question is what will happen in the narrow (from Ormuz) and, if there is a closure, this will have implications for oil prices,” said Jukka Jarvela, head of stock listed in Mandatum Asset Management.
Most of the main sectors of Stoxx 600 retreated, with banks leading the fall, with a low of 2.3%.
In London, the Financial Times rate retreated 0.46%to 8,834.03 points.
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In Frankfurt, the DAX index fell 1.12%to 23,434.65 points.
In Paris, the CAC-40 index lost 0.76%to 7,683.73 points.
In Milan, the FTSE/MIB index had a devaluation of 1.36%to 39,387.22 points.
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In Madrid, the IBEX-35 index recorded a low of 1.41%to 13,911.70 points.
In Lisbon, the PSI20 index devalued 1.31%to 7,447.30 points.
