Smoke rises from a building destroyed by an Israeli airstrike as journalists and local residents visit during a press tour on October 2, 2024 in Beirut, Lebanon.
Daniel Carde | Getty Images
LONDON — European stocks moved lower Thursday as conflict in the Middle East weighs on regional investor sentiment.
The pan-European Stoxx 600 was down 0.88% by 3:15 p.m. London time, with all sectors and major bourses trading in the red. Construction and materials were last down 1.75% while mining stocks also lost 1.43%.
Auto stocks meanwhile slumped 1.77% on reports that the European Union could push through tariffs of up to 45% on Chinese electric vehicle (EV) makers as soon as Friday — a move European carmakers have opposed. Stellantis and Volvo both slumped more than 3% while Porsche and Renault also pulled back.
European stocks closed mixed yesterday as investors assessed the ongoing conflict in the Middle East and assessed fresh unemployment data in the euro zone that showed unemployment across the euro zone held steady on the month at a record-low 6.4% in August.
Israel attacked central Beirut early Thursday, killing at least six people, as it pursues Iran-backed armed group Hezbollah. Israel began ground incursions in Lebanon on Tuesday and the strike on Beirut earlier today comes after Iran fired roughly 180 ballistic missiles at Israel earlier this week. Israeli authorities say there were no casualties as a result of the offensive, and that most of the missiles were intercepted.
In the Asia-Pacific region overnight, Hong Kong stocks plunged as the China stimulus rally, seen after authorities announced a slew of support measures last week, appeared to ease. Markets in mainland China remain closed until Oct. 8.
Meanwhile in the U.S., the S&P 500 wavered Thursday after weekly initial jobless claims came in slightly higher than expected. The data comes ahead of the all-important September payrolls report, which is due on Friday.