Stock markets decline over Iraq air strikes
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.