FX.co ★ European Stocks Drop Amid Geopolitical Jitters

On Thursday, the STOXX 50 index declined by 0.8%, reaching 5,225—its lowest point since April 30. Meanwhile, the broader STOXX 600 saw a 0.5% drop. The market downturn was largely due to rising tensions in the Middle East. The situation between Israel and Iran has escalated, with U.S. President Donald Trump indicating that the United States might join Israeli airstrikes on Tehran. In parallel, EU leaders plan to engage in nuclear discussions with Iran on Friday.

Regarding monetary policy, both the Bank of England and the U.S. Federal Reserve opted to maintain their current interest rates as they tackle ongoing inflation issues and global uncertainties. In contrast, central banks in Norway and Switzerland have reduced borrowing costs to bolster their economies.

In corporate developments, Stora Enso experienced a nearly 15% surge in share value following its announcement of a strategic review of its Swedish forest assets. Meanwhile, Mandatum saw its shares drop by 5% after private equity firm Altor reduced its stake in the company.