Washington – Global stock markets ended generally lower on Thursday, as their nervousness over the latest developments in the Middle East was evident, with only some corporate results bringing a glimmer of optimism.
In New York, following a double record for the Nasdaq index and the broader S&P 500 index, they respectively fell by 0.89% and 0.41%. The Dow Jones, on the other hand, dropped by 0.36%.
In Europe, the session was slightly more disorderly. Paris saw a progress of 0.87%, while London declined by 0.19%, Frankfurt by 0.16%, and Milan gained 0.26%. In Zurich, the SMI rose by 1.38%.
At the center of concerns was the Brent North Sea, the international benchmark for oil, which continued to climb above $100 per barrel, reaching $105.07 (+3.10%).
Its American equivalent, WTI, followed the same trend, closing at $95.85.
“The nervousness of investors is increasing day by day, as long as the situation in the Middle East remains uncertain,” summarized Andreas Lipkow of CMC Markets in Frankfurt.
According to him, the oil prices are sending “very clear signals of inflation.”
The Strait of Hormuz continues to face a double blockade, from both Americans and Iranians.
And there seems to be no sign of a quick reopening of this chokepoint for essential commodities to the global economy (oil, gas, and fertilizers).
US President Donald Trump reassured on Thursday that he had “all the time in the world” in the war in the Middle East, where the ceasefire in place for two weeks between Tehran and Washington seems to hang by a thread.
No progress has been observed in organizing discussions between the two enemy countries.
“We do not know what decisions Trump will make, and that is the risk factor,” summarized Antoine Andreani, a financial analyst for the online investment platform XTB, for AFP.
The head of state said he had no intention of using nuclear weapons against Iran.
– L’Oréal, STMicroelectronics, and Texas Instruments on the Rise –
Another focus of the markets was the quarterly performance of companies, which brought some movement.
In Paris, investors flocked to the shares of the global cosmetics giant L’Oréal after better-than-expected results in the first quarter (+8.97%, at 375.85 euros per share).
In Paris, the semiconductor manufacturer STMicroelectronics did even better than L’Oréal (+14.44% at 42.87 euros).
The group announced it is “now strategically positioned to capture the growth potential of new AI-related programs,” with a significant increase in its first-quarter revenue and a decrease in net income.
On Wall Street, the electronic components specialist Texas Instruments surged by over 20% to 282.23 dollars.
With results exceeding expectations in the first three months of the year, the company expects its earnings per share this quarter to range between 1.77 and 2.05 dollars, compared to the expected 1.57 dollars by analysts.
However, the electric vehicle specialist Tesla (-3.56% at 373.72 dollars) failed to capitalize on better-than-expected results. Investors were concerned about its increasing expenses, estimated at $25 billion this year.
– Cautious Currency and Bond Yields –
The bond market remained cautious, waiting for the meetings of major central banks next week.
The yield on the ten-year German “Bund” was still flirting with 3% (3.03%), the level to which it jumped at the beginning of the conflict.
Its French equivalent rose to 3.68% from 3.65% the previous day.
The yield on US ten-year rates increased from 4.30% to 4.32%.
The dollar regained 0.18% against the euro, at 1.1684 dollars per euro.
“At the moment, there are simply too many unanswered questions to justify a clear trend of the dollar in one direction or another,” said Antje Praefcke of Commerzbank.
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