Europe stocks retreat as U.S-Iran ceasefire comes under strain
Shares in Europe fell on Thursday, as the fragile truce agreed between the U.S. and Iran already shows signs of strain.
Aliver
Shares in Europe fell on Thursday, as the fragile truce agreed between the U.S. and Iran already shows signs of strain.
The pan-European Stoxx 600 index was seen trading down 0.6% shortly after 10:50 a.m. in London, with most major regional bourses and sectors in the red.
The U.K's FTSE 100 was last seen 0.2% lower, while France's Cac 40 began the day down 0.8%. Germany's DAX shed 1.2%.
Travel and leisure stocks were hardest hit in morning trade, with German firms Lufthansa and Tui giving up some of Wednesday's gains to trade down 3.5% and 2%, respectively.
Late on Wednesday, Iran's parliamentary speaker Mohammed Bagher Ghalibaf accused the U.S. of violating the ceasefire less than 24 hours after it was agreed. Ghalibaf highlighted Israel's continued attacks on Lebanon, a drone's entry into Iranian airspace and the denial of the Islamic Republic's right to enrich uranium.
U.S. military forces will remain deployed in and around Iran until Tehran fully complies with the "real agreement," President Donald Trump said Wednesday, warning that any breach would trigger a military response larger than anything seen before.
Asian markets traded lower following the dispute. South Korea's Kospi was down 1.53%, while the small-cap Kosdaq declined 1.38%.
Japan's Nikkei 225 fell by 0.77%, while the Topix was 0.78% lower.
Thursday's moves follow a particularly strong session in Europe on Wednesday, when the pan-European Stoxx 600 index finished the day 3.7% higher.
Antofagasta, Lufthansa, and Easyjet were among the biggest risers on the day, each gaining around 10%.
