European shares nosedived to a near two-week low on Thursday as escalating tensions in the Middle East cooled investor enthusiasm ahead of a crucial European Central Bank policy decision.
The pan-European STOXX 600 index dropped 2% by 0934 GMT, primarily impacted by underperforming industrial stocks.
Concerns about prolonged Middle Eastern instability and shifts in rate expectations are contributing to diminished risk appetite, leaving markets hesitant to ‘buy the dip.’ Key decisions on interest rates across Europe remain in focus as the economic outlook remains uncertain.