New York (AFP) – Global equities were mixed Friday, while oil prices retreated as markets weighed the latest developments in the war between Iran and Israel. Markets rose after US President Donald Trump said he would allow for up to two weeks before possible US military action against Iran. But on Friday afternoon, Trump expressed doubt that European powers would be able to help end the Iran-Israel war, telling reporters, “Europe is not going to be able to help in this.”
Both the S&P 500 and Nasdaq finished lower following a choppy session. Analysts pointed to broad investor unease. “We have a situation in the Middle East where missiles are still firing, there’s no ceasefire and there’s a fear that the US may be involved,” said Adam Sarhan of 50 Park Investments. In light of uncertainty on Iran, trade, and other areas, “investors are de-risking, they’re selling stocks ahead of the weekend,” Sarhan said. European equity markets mostly rose while Asian markets were mixed.
The Brent international crude benchmark contract dropped more than two percent after Trump’s remarks, with analysts pointing to investor relief following fears that the United States could immediately join the Israeli campaign. US oil prices fell more modestly because a US holiday on Thursday kept trading volumes low that day. “News that President Trump would delay any decision on joining Israel’s attacks against Iran has boosted the market mood,” said Kathleen Brooks, an analyst at trading firm XTB. “Brent crude has dropped…as traders price out the worst-case scenario for geopolitics.”
Crude futures had soared and global equities slumped in recent sessions as the Israel-Iran conflict showed no signs of easing, with investors pricing in the risk of tighter oil supplies that would likely weigh on economic growth. But analysts cautioned of more volatility ahead. “While the immediate prospect of a US intervention in Iran may have diminished, the fact this is reportedly a two-week hiatus means it will remain a live issue for the markets going into next week,” said Dan Coatsworth, an investment analyst at AJ Bell.
While the Middle East crisis continues to absorb most of the news, Trump’s trade war remains a major obstacle for investors as the end of a 90-day pause on his April 2 tariff blitz looms. “While the worst of the tariffs have been paused, we suspect it won’t be until those deadlines approach that new agreements may be finalized,” said David Sekera, chief US market strategist at Morningstar. “Until then, as news emerges regarding the progress and substance of trade negotiations, these headlines could have an outsize positive or negative impact on markets,” he said.
– Key figures at around 2050 GMT –
Brent North Sea Crude: DOWN 2.3 percent at $77.01 per barrel
West Texas Intermediate: DOWN 0.3 percent at $74.93 per barrel
New York – Dow: UP 0.1 percent at 42,206.82 (close)
New York – S&P 500: DOWN 0.2 percent at 5,967.84 (close)
New York – Nasdaq: DOWN 0.5 percent at 19,447.41 (close)
London – FTSE 100: DOWN 0.2 percent at 7,589.66 (close)
Paris – CAC 40: UP 0.5 percent at 7,589.66 (close)
Frankfurt – DAX: UP 1.3 percent at 23,350.55 (close)
Tokyo – Nikkei 225: DOWN 0.2 percent at 38,403.23 (close)
Hong Kong – Hang Seng Index: UP 1.3 percent at 23,530.48 (close)
Shanghai – Composite: DOWN 0.1 percent at 3,359.90 (close)
Euro/dollar: UP at $1.1516 from $1.1495 on Thursday
Pound/dollar: DOWN at $1.3444 from $1.3465
Dollar/yen: UP at 146.13 yen from 145.45 yen
Euro/pound: UP at 85.66 pence from 85.37 pence
burs-jmb/acb
© 2024 AFP
