Kalkine: FTSE 100 Drops as Geopolitical Tensions and Eurozone Data Pressure Markets

Highlights

• FTSE 100 opened lower amid reports of Israeli airstrikes in Iran, triggering broad market unease

• The British pound declined alongside equities as market sentiment turned cautious

• GSK seeks expanded EMA approval for Arexvy RSV vaccine amid broader market softness

The FTSE 100 index saw a lower opening, reflecting heightened caution in the wake of escalating tensions between Israel and Iran. The market sentiment was dampened further by a drop in the British pound against the dollar, as geopolitical risks weighed on broader investor confidence.

Middle East Conflict Influences Early Trade

Widespread airstrikes launched by Israel on multiple military and nuclear sites in Iran have intensified global concerns. The announcement of a state of emergency in Israel and unconfirmed local media reports of senior Iranian military casualties have further contributed to uncertainty. Iran’s official stance points to a severe response, with mention of both Israel and the United States, although U.S. sources emphasized the unilateral nature of the Israeli military action. The evolving developments in the region had an immediate impact on European equity markets.

European Benchmarks Follow Downward Path

Indices across Europe mirrored the sentiment seen on the FTSE 100. Germany’s DE40 and France’s FCHI experienced broad-based declines in early trading. Market participants appeared to respond both to the geopolitical developments and to region-specific macroeconomic indicators that suggested moderating price pressures.

Eurozone Inflation Indicators Reflect Softer Trends

Latest consumer price data from major eurozone economies showed a continuation of easing inflationary pressures. In Germany, year-on-year figures confirmed a deceleration in price increases, while monthly inflation in Sweden remained marginal. France also recorded a significant softening in annual inflation, reinforcing a regional trend that may influence upcoming monetary decisions.

GSK Advances Vaccine Strategy in the EU

GSK plc (LON:GSK) has announced that the European Medicines Agency has accepted its application to extend the approved age range for its Arexvy RSV vaccine. The extension request aims to broaden coverage to include adults starting at age eighteen. The Arexvy vaccine, already approved for use in older age groups, could play a more prominent role in public health programs if the expansion receives regulatory clearance.

Commodity Movement and Energy Markets

Brent crude futures (LCO) moved sharply, reflecting concerns around supply disruptions linked to conflict in the Middle East. The rise in oil prices has added pressure to the global inflation outlook. Meanwhile, precious metals firms such as DPM registered upward movement, potentially benefiting from increased safe-haven interest amid the geopolitical backdrop.

Currency and Index Performance Overview

The British pound continued to trend lower against the U.S. dollar, tracking broader risk aversion. Key indices such as the FTSE 100, France’s FCHI, and Germany’s DE40 faced downward momentum in early trading.

GSK’s developments place it in focus, with its role in the healthcare segment of the FTSE 350 and relevance for future regulatory updates.