MOSCOW / ISTANBUL

European stock markets ended Friday with losses as escalating tensions in the Middle East weighed on investor sentiment, overshadowing positive signals from US-China trade discussions.

Stoxx Europe 600 index dropped 0.89% to close at 544.94 points.

Germany’s DAX 40 index slid 1.07% to 23,516.23 points, France’s CAC 40 fell 1.04% to 7,684.68 points, and Italy’s FTSE MIB 30 tumbled 1.28% to 39,438.75 points. In the UK, the FTSE 100 index also edged down 0.39%, closing at 8,850.63 points.

Meanwhile, the euro lost ground against the US dollar, down 0.181% to around 1.156 as of 7.20 pm local time (1620GMT).

In European markets, escalating geopolitical tensions in the Middle East overshadowed the optimism stemmed from the US-China talks, while concerns that tensions would further escalate increased risk perception.

Investors grew increasingly risk-averse following Israel’s military strike on Iran, with fears mounting over potential regional escalation. The geopolitical flare-up dampened earlier optimism tied to progress in US-China trade relations.