European stocks decline early on, with futures down 500 points

Markets were concerned about the U.S.-Iran war escalating again, and European stocks slid early on.

As of 3:33 p.m. Hong Kong time, Dow Jones futures were temporarily at 46,280 points, down 526 points. The UK FTSE 100 index was at 10,299 points, down 66 points, or 0.64%; Germany’s DAX index was at 22,964 points, down 334 points, or 1.43%; France’s CAC 40 index was at 7,886 points, down 94 points, or 1.19%; Italy’s FTSE MIB index was at 45,134 points, down 580 points, or 1.27%.

In a nationwide address, U.S. President Trump said that a month has passed since the start of the military action against Iran. The U.S. armed forces have won rapid, decisive, and overwhelming victories on the battlefield. The United States will never allow Iran to have nuclear weapons, and over the next two to three weeks it will carry out extremely harsh strikes against Iran.

A spokesperson for the Headquarters of the Central Command of Iran, Haatam Anbiya, said that U.S. and Israeli understanding of Iran’s military forces and equipment is not comprehensive, and they know nothing about Iran’s powerful capabilities that have strategic significance. He stressed that the enemy will face actions that are more destructive, with a wider reach, and more devastating.

Carol Kong, foreign exchange strategist at Australia’s Commonwealth Bank (CBA), said Trump’s remarks failed to soothe the market. The market is starting to realize that before the situation eases, the war is likely to escalate further.

Oil prices surged. New York crude oil futures were currently at $105.95 per barrel, up $5.84, or 5.83%; London Brent crude was at $107.42 per barrel, up $6.33, or 6.26%.