Investors were once again on edge due to the latest developments in the Middle East, with reports of Israel attacking Iran in response to a prior major attack. Despite no initial reports of damage, fears of a conflict in the Middle East and uncertainty surrounding U.S. interest rate policy continued to affect the stock market.
Throughout the afternoon, European stock exchanges showed signs of stabilization as both Iran and Israel appeared to be attempting to de-escalate tensions. However, concerns about inflation and interest rate policies persisted, remaining a focal point for markets in Europe and overseas.
In Japan, the Nikkei 225 index experienced a significant decline due to fears of an escalating conflict in the Middle East, impacting stocks of Japanese suppliers to the semiconductor industry. However, stocks of logistics companies rose as investors anticipated higher freight rates in the event of a war.
Markets were concerned about a potential escalation of the conflict between Iran and Israel on Friday, causing Japan’s Nikkei 225 index to fall by over 2.5 percent. As the day progressed, European stock markets recovered from their morning losses, easing concerns. While major European stock indexes showed improvement, technology companies and chip manufacturers faced losses. Overall, the market remained cautious as technology companies prepared for what could be a challenging earnings season. Korean and other Asian stock exchanges also saw losses