European shares fell amid uncertainty over Mideast war
- The pan-European STOXX 600 was down 0.2% at 579.71 points
European shares fell on Friday as investors remained wary about the outlook of the Middle East war that has stoked inflation risks and clouded global economic growth prospects.
The pan-European STOXX 600 was down 0.2% at 579.71 points by 0816 GMT.
Media stocks fell 1.4% to lead major sectors lower.
The week has been marked with volatility, with the benchmark index briefly dropping 10% on Monday from its February record high, but is now set to end higher as President Trump said he would again extend the deadline for Iran to reopen the Strait of Hormuz.
However, reports suggested he is also looking at sending more ground troops to the Middle East, hinting at a possible escalation.
Europe is dependent on shipments through the strategic Strait of Hormuz and with the waterway shut, price pressures, especially through higher energy costs, are a concern.
Those worries have lifted bets to 71% for an interest rate hike by the European Central Bank in April, up from no rate hikes for most of the year from before the war started.
Among individual stocks, Pernod Ricard advanced 3.6% after the sprit company said it is in discussions about a possible merger with Jack Daniel’s owner Brown-Forman.