(Il Sole 24 Ore Radiocor) - Milano, 10 ott - European shares closed lower as easing geopolitical tensions in the Middle East provided some relief to markets, while uncertainty over French politics, the prolonged US government shutdown as well as renewed trade tensions between the US and China kept investors cautious.

US president Donald Trump threatened to cancel his upcoming meeting with his Chinese counterpart Xi Jinping and to impose a 'massive increase of Tariffs' on Chinese imports to the US over export controls that Beijing intends to impose on rare earths.

Sentiment had improved after Israel approved the US-brokered ceasefire and hostage release deal in Gaza, seen as a key step toward de-escalation.

Attention remained on Paris, where president Emmanuel Macron is holding talks with party leaders before naming a new prime minister, and on Washington, where negotiations to end the budget impasse have stalled for a second week.

On the data front, Italy's industrial production fell 2.4% month on month in August and 2.7% year on year, confirming continued weakness in manufacturing activity.

The London FTSE 100 closed down 0.92% at 9,421.62 points, the Frankfurt DAX fell 1.71% at 24,229.58 points, the Paris CAC 40 lost 1.53% at 7,918.00 points, while in Milan the FTSE MIB dropped 1.74% at 42,047.50 points, and in Madrid the IBEX 35.

closed 0.83% lower at 15,575.52 points.

(RADIOCOR) 10-10-25 18:02:40 (0519) 5 NNNN