European shares fall amid Israel-Hamas war and concerns over interest rates

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European shares fall amid Israel-Hamas war and concerns over interest rates
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Iseq down 2.6% with falls across the board

European shares declined on Friday amid concerns that the Israel-Hamas war could give rise to a broader regional conflict in the Middle East and as investors fretted afresh about interest rates.

Rising government bond yields in Europe and in the US have added to risk-averse sentiment, with central bank policymakers, including Federal Reserve chair Jerome Powell, hinting at continued restrictive monetary policy.How to influence people at work and improve your status“Geopolitics is driving investor sentiment at this point, around rising commodity prices and the potential for that to feed into inflation,” said Richard Flax, chief investment officer at Moneyfarm.

Financial stocks were a big drag, with HSBC and Prudential falling 3.9 per cent and 3.4 per cent, respectively.

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