Stocks stumble and oil prices surge as Mideast fighting continues

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Stocks stumble and oil prices surge as Mideast fighting continues

ECONOMY 13.10.2023

Global markets largely slipped on Friday, while oil prices surged by almost six percent, amid fears that Israel's imminent ground offensive of Gaza could turn a localized war into a regional conflict and impact oil supplies in the crude-rich Middle East.

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Wall Street ended the day mixed, with the tech-rich Nasdaq declining 1.2 percent, and the S&P 500 500 falling 0.5 percent.

But the Dow Jones Industrial Average defied the broader downward trend, rising 0.1 percent on the back of positive earnings from JP Morgan and Wells Fargo, two of America's biggest banks.

CFRA chief investment strategist Sam Stovall told AFP that "JPMorgan and Wells Fargo set an encouraging pace" with better-than-expected earnings and revenues.

Recent Middle East turmoil means this "may be the most dangerous time the world has seen in decades", JPMorgan Chief Executive Jamie Dimon said in a statement earlier Friday.

JPMorgan shares earlier rose 1.5 percent while those of Wells Fargo were lifted 3.1 percent.

All the major European markets fell Friday, as the mood among traders turned more pessimistic.

Asian markets also declined after Chinese inflation data came in lower than many expected, fueling deflationary concerns in the world's second-largest economy.

- Crude surge -

Contracts for Brent North Sea crude for December delivery surged 5.7 percent Friday, while those for America's West Texas Intermediate rose 5.8 percent, as fighting between Israel and Hamas militants in the Gaza Strip continued.

Thousands of Palestinians fled from the north to the south of the Gaza Strip on Friday after Israel warned it is preparing a ground offensive in response to last weekend's attacks, in which Hamas militants killed more than 1,300 people.

"The market expects it to be a very bad weekend in Israel and Gaza," Adam Sarhan of 50 Park Investments told AFP.

"That Israel gave notice to the residents to leave suggests it is going to get ugly," he added.

Energi Danmark analysts said a recent pipeline sabotage in the Baltic Sea added to "geopolitical uncertainty" in the wake of the Israel-Hamas conflict.

Helsinki believes last weekend's leak in the Finland-Estonia gas pipeline was caused by "external" activity, sparking suspicions of Russian involvement.

- Key figures around 2015 GMT -

New York - Dow: UP 0.1 percent at 33,670.29 points (close)

New York - S&P: DOWN 0.5 percent at 4,327.78 (close)

New York - Nasdaq: DOWN 1.2 percent at 13,407.23 (close)

London - FTSE 100: DOWN 0.6 at 7,599.60 (close)

Frankfurt - DAX: DOWN 1.6 percent at 15,186.66 (close)

Paris - CAC 40: DOWN 1.4 percent at 7,003.53 (close)

EURO STOXX 50: DOWN 1.5 percent at 4,136.12 (close)

Tokyo - Nikkei 225: DOWN 0.6 percent at 32,315.99 (close)

Hong Kong - Hang Seng Index: DOWN 2.3 percent at 17,813.45 (close)

Shanghai - Composite: DOWN 0.6 percent at 3,088.10 (close)

Dollar/yen: DOWN at 149.53 yen from 149.79 yen on Thursday

Euro/dollar: DOWN at $1.0513 from $1.0534

Pound/dollar: DOWN at $1.2138 from $1.2177

Euro/pound: UP at 86.58 pence from 86.48 pence

Brent North Sea crude: UP 5.7 percent at $90.89 per barrel

West Texas Intermediate: UP 5.8 percent at $87.69 per barrel

burs/bcp/lcm/jj/da

P.Hernandez--AT

Arizona Tribune - Stocks stumble and oil prices surge as Mideast fighting continues

Stocks stumble and oil prices surge as Mideast fighting continues

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