Global Market Jitters: Stocks Dip Amid Trade & Geopolitical Fears

European shares faced a decline, alongside major global markets, due to trade tensions and geopolitical concerns. This downturn was exacerbated by Heathrow Airport's temporary closure following a fire. While the market anticipates further economic impacts, proactive moves by Germany and central bank strategies could provide some stability.

Amid ongoing trade tensions and geopolitical uncertainty, European shares plummeted on Friday. Travel and leisure stocks took a significant hit following a fire at Britain's Heathrow Airport, which led to its closure and disrupted the travel sector.

The STOXX 600 index fell 0.6%, marking its third consecutive session of decline. Airlines, including British Airways parent IAG, Lufthansa, and Ryanair, witnessed declines as the impact of the airport's temporary shutdown weighed heavily on the sector.

Despite an overall weekly increase in the European benchmark index, fears of slower growth and high inflation, spurred by global trade uncertainties including U.S.-Europe tariff tensions, persist. Germany's economic strategy offers hope amid these challenges, with central banks maintaining cautious approaches.

(With inputs from agencies.)