European Markets Near Monthly Lows

European stock markets weakened again during Tuesday's trading as investors adopted a cautious stance ahead of the Federal Reserve's policy decision. The STOXX Europe 600 fell approximately 0.4%, hovering near multi-month lows.

Pressure was also evident across the region's major indices. Germany's DAX fell 0.2%, France's CAC 40 declined 0.4%, and the UK's FTSE 100 dropped 0.4%, while Italy's FTSE MIB suffered the steepest decline, falling nearly 1%.

Market sentiment remains overshadowed by escalating tensions in the Gulf region. The widening conflict has stoked concerns regarding energy supplies and kept oil prices elevated, thereby renewing fears of rising inflation in Europe.

Persistently high government bond yields have also dampened appetite for equities. Investors worry that a combination of energy-driven inflation and high interest rates could slow economic growth while simultaneously increasing corporate borrowing costs.

European markets continue to face pressure from three fronts: geopolitical risks, high yields, and uncertainty regarding Federal Reserve policy. As long as energy prices remain high and markets lack clarity from the central bank, European stocks are likely to maintain a defensive trend.(asd)*

Source: Newsmaker.id