Global share markets rose and oil prices edged down slightly, even after Iran launched new missile attacks on Israel. This follows a more than 7% surge in oil prices last Friday, triggered by an Israeli attack on Iranian targets, due to fears that a wider conflict could disrupt the flow of Iranian oil
File Pic.
Global share markets have advanced and oil prices have fallen back slightly as Iran unleashed a fresh wave of missile attacks on Israel early Monday.
Israel's attack on Iranian nuclear and military targets caused the price of oil to surge more than 7% on Friday, given that Iran is one of the world's major oil producers, although Western sanctions have limited its sales. A wider conflict could impede the flow of Iranian oil to its customers and sustain higher prices for crude and petrol worldwide. However, early Monday, those concerns appeared to abate somewhat.
US benchmark crude oil lost 73 cents, settling at $72.25 per barrel. Brent crude, the international standard, also gave up 73 cents, trading at $73.50 per barrel. Both are currently trading at their highest levels so far this year.
In share trading, futures for the S&P 500 and the Dow Jones Industrial Average were up 0.5 per cent. Germany's DAX gained 0.2 per cent to 23,572.39, and the CAC 40 in Paris edged 0.6% higher to 7,728.66. Britain's FTSE 100 inched up 0.3 per cent to 8,876.26.
During Asian trading, Tokyo's Nikkei 225 added 1.3% to 38,311.33, while the Kospi in Seoul gained 1.8% to 2,946.66. Chinese markets saw gains after May data revealed stronger consumer spending, though factory activity and investment growth were slower. A 6.1% year-on-year jump in retail sales was partially offset by lower-than-expected growth in industrial output, which rose 5.8% from a year earlier. Hong Kong's Hang Seng surged 0.7% to 24,060.99, and the Shanghai Composite Index added 0.4% to 3,388.73. Australia's S&P/ASX 200 remained largely unchanged at 8,548.40.
On Friday, the S&P 500 sank 1.1% and the Dow Industrials dropped 1.8%. The Nasdaq composite lost 1.3%. Companies heavily reliant on fuel and those requiring strong consumer confidence for travel experienced some of the sharpest losses. Cruise operator Carnival dropped 4.9%, United Airlines sank 4.4%, and Norwegian Cruise Line Holdings fell 5%. These declines offset gains for US oil producers and other companies that could benefit from increased conflict between Israel and Iran. Exxon Mobil rose 2.2%, and ConocoPhillips gained 2.4%, as the surging price of crude portends bigger profits for them. Contractors producing weapons and defence equipment also rallied, with Lockheed Martin, Northrop Grumman, and RTX all rising more than 3%.
The price of gold has climbed as investors seek safer places to park their cash. An ounce of gold added 1.4% on Friday and was holding steady early Monday. Prices for Treasury bonds would typically rise when investors are feeling nervous, but Treasury prices fell Friday, which in turn pushed up their yields. This was partly due to worries that a spike in oil prices could drive inflation higher.
Inflation has remained relatively tame recently, staying near the Federal Reserve's 2% target, but concerns are high that it could accelerate due to President Donald Trump's tariffs. A better-than-expected report on Friday regarding US consumer sentiment also contributed to higher yields. The preliminary report from the University of Michigan indicated that sentiment improved for the first time in six months after Trump paused many of his tariffs, while US consumers' expectations for future inflation eased.
In currency trading early Monday, the US dollar gained to 144.18 Japanese yen from 144.03 yen. The euro rose to $1.1582 from $1.1533.
This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
