Stock Markets Under Pressure Amid Geopolitical Tensions and Economic Concerns

Europe's key stock index fell to a three-month low amid geopolitical tensions following Russia's nuclear doctrine update. Investors shifted from risky assets to safe havens. The STOXX 600 fell 0.9%, marking a third straight day of decline. Automobiles and banks experienced significant losses.

Europe's principal stock index, the STOXX 600, has plummeted to a three-month low as geopolitical tensions rise following Russia's announcement of an updated nuclear doctrine. This announcement prompted investors to abandon risky assets in favor of safe havens, leading the STOXX 600 to drop by 0.9% on Tuesday, continuing its downward trend for the third consecutive day.

The Kremlin's new nuclear doctrine aims to communicate the certainty of Russian retaliation in the event of an attack, causing unease among investors. Patrick Armstrong, Chief Investment Officer at Plurimi Wealth, indicated that despite the tension, this might just be rhetoric, and markets may soon adjust. The Euro STOXX volatility index reflected investor anxiety, reaching 20.34, its peak for the month.

The automobile and banking sectors were notably impacted, both experiencing slumps of around 2%. Meanwhile, markets are also closely monitoring developments in U.S. economic policy and potential tariff implications under President-elect Trump's administration. Additionally, individual stocks such as Thyssenkrupp and Aeroports de Paris witnessed notable share movements due to recent corporate announcements.

(With inputs from agencies.)