European stock indices fell on Monday but oil prices pulled back on recent gains, as markets cautiously watches for signs of escalation in the current ongoing Hamas – Israel war.
Israeli Prime Minister Benjamin Netanyahu have vowed to “demolish Hamas” and has positioned troops alongside the southern border of Gaza for ground invasion. Meanwhile, Iran has issued warning of escalation if Israel do not end the aggression against Palestinians.
Oil prices surged last week as investors price in the chance of escalation in the world’s top oil-producing region, while U.S. Treasuries and gold prices rose as traders bought safe-haven assets.
Traders are wondering if other countries will participate in the ongoing conflict, which will shoot up the oil prices further and deal of fresh blow to the global economy, which has just recovered from the setbacks of COVID-19 pandemic.
European indices were in red with the STOXX 600 down 0.2%, while MSCI World Equity was also down by 0.2% for the day. London’s FTSE 100 down by 0.1%.