US missile attack on Syria jolts financial markets

On Friday European stocks fell, mirroring risk-off sentiment in global financial assets, after the U.S. launched a missile attack on Syria.

The Stoxx Europe 600 Index fell 0.4 percent at 8:25 a.m. in London. All industry groups fell except energy producers, which tracked an advance in crude prices. Miners fell the most, even as gold producers advanced. The losses dragged the Stoxx 600 toward its worst weekly drop in a month.

Gold, oil and government bonds were among the biggest gainers following the first military strike undertaken by President Donald Trump’s administration, as some traders sought safety and others judged increasing tension in the Middle East would spur crude. Russia’s ruble dropped the most in almost a month and its bonds fell as optimism over a detente with the U.S. evaporated. The lira and stocks retreated in Turkey, which shares a border with Syria.

Stock volatility across markets jumped in the wake of the attacks, but the initial impact began to fade for some assets. Investors are digesting a week of developments, from a meeting between Trump and President Xi of China, to Fed signals it may reduce its balance sheet this year and the ECB underscoring its dovishness. Attention now turns to payroll data, after a strong private reading and weak automaker sales gave conflicting signals on the U.S. economy.

The Stoxx Europe 600 Index dropped 0.3 percent. Euro-area finance ministers were trying to break a months-long deadlock over Greece’s bailout in Malta during the day, after meetings in Brussels and Berlin this week failed to yield an accord that would pave the way for about 7 billion euros in aid for Athens.

Japan’s Topix index climbed 0.7 percent, rebounding after erasing a rally of as much as 1.2 percent during the morning session. The Shanghai Composite Index rose 0.2 percent, giving it a 2 percent gain for the holiday-shortened week.