Stock markets decline over Iraq air strikes

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European stock market indices have followed their Asian counterparts declining in response to Barack Obama’s announcements of air strikes in northern Iraq.

The Japanese Nikkei index fell by 3% to a two month low. European stock markets opened with the FTSE100 falling by 1%, Germany’s already volatile Dax and France’s CAC40 followed suit. German stock markets have been particularly hit by geopolitical tensions, with the Dax declining by 11% since its peak in early July.

The geopolitical instability led investors to choose safe haven assets, the price of gold increased by 1.7% this week, while 10 year US Treasury bond yields hit a 14 month low.


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