0840 GMT - Shares in European banks and insurers traded sharply lower at market open on Monday, as investors weighed the fallout from an escalation in the Middle East. Markets were rattled by the prospect of a surge in specialty war-risk claims, potential damage to regional energy infrastructure and disruptions to global supply chains. Following weekend strikes by U.S. and Israeli forces on Iran and subsequent retaliatory actions, the STOXX Europe 600 Insurance subindex fell around 2.5%, while the banking subindex dropped nearly 4%. Both sectors significantly underperformed the wider STOXX 600, which declined 1.9% as fears of heightened credit risk and an oil-driven inflationary shock weighed on sentiment. (elena.vardon@wsj.com)
(END) Dow Jones Newswires
March 02, 2026 03:40 ET (08:40 GMT)
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