European markets were slightly higher on Monday amid heightened geopolitical tensions following Iran’s massive drone and missile attack on Israel Saturday night.
The regional Stoxx 600 index rose 0.1% in early deals, with most sectors in positive territory. Auto stocks led gains, rising 0.9%, while oil and gas fell 1.2% on rising risks in the Middle East.
Israel said it downed 300 drones and missiles targeting its territory. Last week, expectations that an Iranian attack could be imminent rose after a suspected Israeli strike that killed top Iranian officials in Syria. Israel has vowed to retaliate but has signaled that it will bide its time.
Asia-Pacific markets slipped Monday as traders weighed the impact of the attack, with focus also on key economic data from China and Japan later in the week.
U.S. stock futures managed to tick higher Sunday as investors dealt with a multitude of issues, including Iran’s attack and a spike in equity market volatility that sent the Dow Jones Industrial average to its worst week of the year last week.