European shares slide on spreading Iraq unrest

European stock markets closed in the red on Friday, with airlines hit hard by higher oil prices caused by spreading unrest in Iraq. London’s FTSE 100 index of top companies sank 0.95 per cent to close at 6,777.85 points, weighed down also after Bank of England governor Mark Carney hinted at a rate hike sooner than expected. Frankfurt’s DAX 30 ended the week down 0.26 per cent to 9,912.87 points, and the CAC 40 in Paris slipped 0.24 per cent to 4,543.28 points. Brent oil soared to a nine-month high at $114.69 a barrel, as investors fretted over spreading unrest in crude producer Iraq, traders said. And gold hit a two-and-a-half week peak at $1,277.65 per ounce, as investors sought a safe-haven investment. ‘Global markets have been hit particularly hard today, dropping heavily due to a combination of the concerns in Iraq and an unexpected announcement by Mark Carney last night which could see interest rates rise sooner than markets previously expected,’ said Sam Fox, an analyst at Spreadex trading and betting firm. ‘The deteriorating situation in Iraq, coupled with reports Iran may be looking to intervene, has given European (stock market) traders the cue to sell,’ added analyst Alastair McCaig at IG trading group, according to AFP.