New York (AFP) – Oil prices fell further Wednesday on receding worries about a bigger Israel-Iran conflict, while global stocks varied following a stream of mixed earnings.
The top two global oil contracts fell more than three percent, with analysts highlighting that crude supplies had not been affected after the firing of missiles and drones at the weekend by crude-rich Iran. Analysts also cited easing worries about a widening conflict.
Edoardo Campanella, an energy economist at UniCredit Bank, predicted a gradual easing of crude prices.
“Given the diplomatic pressure by Western powers, investors expect Israel to adopt a restrained response against Iran,” Campanella said.
“We continue to expect tensions in the Middle East to remain mostly limited to the Gaza Strip, with limited regional fallout.”
In Asia, Tokyo stocks slumped for a second session running as the yen remained under pressure near 34 year lows.
European equities rebounded strongly for much of the session, but gave up part of the gains as Wall Street stocks turned lower.
Paris led the way, climbing 0.6 percent.
“The French index has been given a boost by the luxury sector, including Hermes and LVMH, after steady results eased market fears about a slowdown in sales at LVMH,” said Kathleen Brooks, research director at XTB.
LVMH, the world’s top luxury group, said late Wednesday sales slipped two percent in the first quarter from the strong performance during the same period last year, and said Chinese sales were recovering.
“Its results were not as weak as feared and they could act as a catalyst for a recovery in this sector, after LVMH shares fell five percent in the past month,” added Brooks.
London won 0.4 percent, helped by another drop to UK inflation.
Analysts expect the Bank of England to start cutting interest rates later this year, though the exact timing is unclear with prices growing more than expected.
But US stocks fell again despite early gains, extending a weak stretch ahead of earnings from tech giants and influential industrial companies.
With hopes ebbing for a significant easing of US monetary policy in 2024 and angst over conflict in the Middle East, stocks have been under pressure in recent sessions.
“The only thing that is going to pull the market higher is earnings,” said Spartan Capital’s Peter Cardillo, pointing to a wave of results from big companies starting later this week with Netflix.
– Key figures around 2050 GMT –
New York – Dow: DOWN 0.1 percent at 37,753.31 (close)
New York – S&P 500: DOWN 0.6 percent at 5,022.21 (close)
New York – Nasdaq Composite: DOWN 1.2 percent at 15,683.37 (close)
London – FTSE 100: UP 0.4 percent at 7,847.99 (close)
Paris – CAC 40: UP 0.6 percent at 7,981.51 (close)
Frankfurt – DAX: FLAT at 17,770.02 (close)
EURO STOXX 50: DOWN 0.1 percent at 4,914.13 (close)
Tokyo – Nikkei 225: DOWN 1.3 percent at 37,961.80 (close)
Hong Kong – Hang Seng Index: FLAT at 16,251.84 (close)
Shanghai – Composite: UP 2.1 percent at 3,071.38 (close)
Euro/dollar: UP at $1.0676 from $1.0619 on Tuesday
Dollar/yen: DOWN at 154.36 yen from 154.72 yen
Pound/dollar: UP at $1.2455 from $1.2426
Euro/pound: UP at 85.69 pence from 85.45 pence
Brent North Sea Crude: DOWN 3.0 percent at $87.29 per barrel
West Texas Intermediate: DOWN 3.1 percent at $82.69 per barrel
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© 2024 AFP
