The Coming Week in Europe: Mideast Weighs on Markets, Euro

BERLIN -- Having withstood a wobbly euro and slumping global technology shares, Europe's equity markets are likely to again be placed on shaky footing next week amid the rising tension in the Middle East.

Although the clashes between Israelis and Palestinians sent a jolt through stock markets the world over last week, should the troubles continue to widen in scope in the coming week, the effects for Europe's bourses could be especially dire.

That's because the euro is also exacerbating things. It has begun to dip back to preintervention levels as investors flock to the U.S. dollar as a safe haven during times of strife. Late Friday, the euro was trading lower at $0.8620. ...