Geopolitical Tensions in the Middle East Impact European Stock Markets – Market Reviews and Analysis

2023-10-14 02:45:31

(Photo: The Canadian Press)

MARKET REVIEWS. European stock markets are moving in the red on Friday, penalized by the fear of a new escalation of geopolitical tensions in the Middle East, which is causing oil prices to rise.

Stock market indices at 7:30 a.m.

In Toronto, the S&P/TSX rose 154.76 points (+0.80%) to 19,590.74 points.

In New York, the S&P 500 gained 25.19 points (+0.59%) to 4299.70 points.

The Nasdaq advances by 108.43 points (+0.83%) to 13,201.28 points.

The DOW increased by 116.07 points (+0.35%) to 33,666.34 points.

The loonie rose by US$0.0013 (+0.18%) to US$0.7423.

Oil decreased by US$1.87 (-2.00%) to US$91.81.

L’or perd 9,20$US (-0,49%) à 1881,70$US.

Bitcoin advances by US$759.28 (+2.89%) to US$27,018.29.

Paris et London slipped around 0.7% at the start of the session in Europe.

In New York, before the markets opened, the average Dow Jones industrial values ​​fell by 0.3% and the expanded index S&P 500 of 0.2%.

In Asia, Tokyo, Shanghai et Sydney lost 0.6%. THE Hang Seng plunged 2.3% in Hong Kong. Seoul gave up 1%.

On the New York Commodity Exchange, the price of oil took US$2.97 to US$85.88 per barrel.

The context

Oil prices are rising on the seventh day of the war between Israel and Hamas with fears that the conflict will spread to neighboring countries.

Israel on Friday ordered the evacuation to the south of “all civilians” from Gaza City, a measure condemned by the UN and rejected by Hamas. Since the start of hostilities, triggered on October 7 by a bloody Hamas attack, at least 1,200 people, mostly civilians, have been killed in Israel.

The barrel of North Sea Brentfor delivery in December, took 3.88% to 89.34 American dollars ($US) and its American equivalent, a barrel of West Texas Intermediate (WTI)for delivery in November, rose 4.06% to US$86.28.

Tensions in the Middle East have also “clearly contributed to the fall in sovereign bond yields this week”, however, “we must not forget that a war increases the inflationary risk in the short and medium term”, comments Théophile Legrand, strategist at Natixis.

On the bond market, the interest rate on the 10-year American bond stood at 4.62% compared to 4.70% at the close on Thursday; its German equivalent was 2.72% compared to 2.78%.

JPMorgan Chase made more money

The American bank JPMorgan Chase (+1.49% in pre-market trading), the largest US bank by asset size, posted net profit of US$13.15 billion in the third quarter, an increase of 35% year-on-year. . She explained that she took advantage of an exceptional situation, particularly in terms of credit costs.

Microsoft’s web is growing

Microsoft (-0.35% in trading before the opening of Wall Street), owner of Xbox, will be able to finalize the purchase of the video game factory Activision Blizzard (+0.13% before market), publisher of “Call of Duty”, “Diablo” and “Candy Crush”, after obtaining the final green light from London on Friday, which removes the last regulatory obstacle to the acquisition.

Sartorius in full penalty

The supplier of materials for the biopharmaceutical sector Sartorius Stedim Biotech (SSB) on Thursday once again revised downwards its turnover forecasts for 2023, the recovery in demand being slower than expected. In Paris, its action fell 13.29%. Its parent company, the German Sartorius, lost 10.33%.

Deutsche Bank offers Numis

The first German bank Deutsche Bank (-1.11%) announced on Friday that it had completed the acquisition initiated at the end of April of the British broker Numis for 410 million pounds (463 million euros), allowing it to strengthen its presence with corporate clients in the United Kingdom. .

Gas on the rise

On the European natural gas side, the futures contract for Dutch TTFconsidered the European benchmark, moved to 53.42 euros (+1.03%) per megawatt hour (MWh) shortly after reaching 56.10 euros per MWh, its highest price since the beginning of February.

On the foreign exchange market, the euro was stable against the US dollar (-0.04%) at US$1.0523 per euro.

The shekelthe Israeli currency, was also stable at 3.97 shekels per US$1.

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