European Shares Close Lower On Middle East Tension

(RTTNews) - After finishing mixed in the previous session, the major European markets all headed south on Thursday as speculation grew over a possible U.S. involvement in the Israel-Iran conflict.

The widening conflict has rattled investors as a major hospital in southern Israeli sustained extensive damage and injuries were reported in a series of Iranian missile attacks. Israel has said it will intensify strikes in retaliation.

Germany's DAX stumbled 260.43 points or 1.12 percent to finish at 23,057.38, while the FTSE in London sank 51.67 points or 0.58 percent to close at 8,791.80 and the CAC 40 in France slumped 102.67 points or 1.34 percent to end at 7,553.45.

In Germany, Zalando plummeted 4,36 percent, while BASF tumbled 1.50 percent, Siemens Energy retreated 1.48 percent, Volkswagen declined 1.32 percent, Deutsche Bank slumped 1.31 percent, Deutsche Post skidded 1.03 percent, Deutsche Borse dropped 0.89 percent, E.ON sank 0.62 percent and Deutsche Telekom rose 0.23 percent.

In London, Airtel Africa plunged 3.06 percent, while easyJet tanked 3.01 percent, Experian stumbled 1.57 percent, Scottish Mortgage weakened 1.45 percent, Rentokil Initial slumped 1.23 percent, Prudential skidded 1.12 percent, Shell rallied 1.07 percent, Vodafone jumped 0.90 percent, Rolls-Royce dropped 0.83 percent, Haleon sank 0.42 percent, Rightmove slid 0.41 percent, British American Tobacco dipped 0.33 percent and Tesco perked 0.20 percent.

In France, Worldline plummeted 6.64 percent, while Societe Generale stumbled 2.81 percent, Credit Agricole surrendered 2.54 percent, BNP Paribas declined 2.52 percent, Carrefour lost 1.37 percent, Vivendi sank 1.35 percent, Engie fell 0.66 percent and Sanofi added 0.37 percent.

In economic news, Eurozone construction output recovered at the quickest pace in more than two years in April, estimates from Eurostat revealed on Thursday. Production in construction climbed 1.7 percent on month in April, reversing a 0.2 percent fall in March.

The Bank of England maintained its interest rate on Thursday after cutting it by a quarter-point last month. The Monetary Policy Committee voted 6-3 to hold the Bank Rate at 4.25 percent. Three members preferred to reduce the rate by 25 basis points. The BoE has reduced the rate four times since last August.

Norges Bank unexpectedly cut its interest rate to 4.25 percent from 4.50 percent on Thursday, marking the first rate cut in five years as inflation eased faster than expected. The bank also signaled further cuts in policy rate if the economy evolves as estimated.