European stocks fall over Syria tension

European stocks have fallen sharply amid the escalating rhetoric of war against Syria over allegations that the Syrian government has used chemical weapons.

On Tuesday, London’s FTSE 100 index slid 0.79 percent to 6.440.97 points, while other European markets were down over two percent.

Frankfurt’s DAX 30 fell 2.28 percent to 8,242.56 points, the CAC 40 in Paris saw a 2.42 percent drop to 3,968 points, Milan dropped 2.34 percent, Madrid fell 2.96 percent, Athens plunged 4.08 percent, and Istanbul slumped 4.73 percent.

“The outlook of a military action in relation to the use of chemical weapons is clearly dampening risk appetite,” Anita Paluch, a trader at Gekko Markets said.

Meanwhile in the US, equities in Wall Street were also down, with the Dow Jones Industrial Average off 0.55 percent to 14,864.91 points, the broader S&P 500 index down 0.86 percent to 1,642.51 points and the tech-rich Nasdaq composite slumping 1.04 percent to 3,619.57 points, by midday trading.

However, global oil prices were up on Tuesday, as the market reacted to renewed possible instability in the Middle East.

Brent oil rose to a six month high of $113.98 a barrel during European trading, with an increase of $3.25 compared to Monday. Gold prices also rallied to $1,419.25 an ounce, up from $1,377.50 the previous session.

The slump in European equities came as the United States and its allies are weighing military action against Syria over accusations that the Syrian government has used chemical weapons.

On August 21, the militants operating inside Syria and the foreign-backed Syrian opposition claimed that 1,300 people had been killed in a government chemical attack on militant strongholds in Damascus suburbs of Ain Tarma, Zamalka, and Jobar.

However, the Syrian government categorically rejected the baseless claim, and announced later that the chemical attack had been actually carried out by the militants themselves as a false flag operation.

Syria has been gripped by deadly unrest since 2011. The United Nations says more than 100,000 people have been killed and millions displaced since the outbreak of the violence.


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Republished from: Press TV