Global stock markets ended mostly lower on Thursday, showing signs of nervousness in response to the latest developments in the Middle East. Only some positive corporate earnings results brought a glimmer of optimism.
In New York, following record highs for the Nasdaq and the S&P 500, both indices fell by 0.89% and 0.41% respectively. The Dow Jones also declined by 0.36%.
In Europe, the session was slightly more chaotic. Paris grew by 0.87%, London slipped by 0.19%, Frankfurt dropped by 0.16%, and Milan increased by 0.26%.
The focus remains on the Brent crude oil from the North Sea, the international benchmark, which continued to climb above $100 per barrel, reaching $105.07 (+3.10%). Its American counterpart, WTI, followed the same trend, closing at $95.85.
Investors’ nervousness is escalating day by day as the situation in the Middle East remains uncertain, according to Andreas Lipkow from CMC Markets in Frankfurt. The oil prices are signaling clear inflationary signals.
The Strait of Hormuz is still facing a double blockade from both Americans and Iranians, with no signs of a quick reopening. This chokepoint is crucial for essential commodities like oil, gas, and fertilizers.
US President Donald Trump stated on Thursday that he has “all the time in the world” for the Middle East conflict, where the ceasefire between Tehran and Washington seems to hang by a thread.
No progress has been made in organizing discussions between the two enemy countries.
“The uncertainty of the decisions Trump might take is the risk factor,” summarized Antoine Andreani, a financial analyst for the online investment platform XTB, for AFP. The President has no intention of using nuclear weapons against Iran.
– L’Oreal, STMicroelectronics, and Texas Instrument Shine –
Another point of focus for the markets is the quarterly performance of companies, which brought significant movement.
In Paris, investors showed great interest in L’Oreal’s stock, pushing it up by 8.97% to 375.85 euros per share following better-than-expected first-quarter results.
STMicroelectronics, the microprocessor manufacturer in Paris, outperformed L’Oreal with a 14.44% increase to 42.87 euros. The company announced a substantial increase in first-quarter revenue but a decline in net profit, positioning itself strategically to tap the growth potential of new AI-related programs.
On Wall Street, the electronic components specialist Texas Instruments surged by nearly 20% to $282.23. The company expects its earnings per share this quarter to range between $1.77 and $2.05, surpassing the analysts’ estimates of $1.57.
On the contrary, the electric vehicle specialist Tesla (-3.56% to $373.72) failed to capitalize on its better-than-expected results. Investors penalized the company for its continuously rising expenses, estimated to reach $25 billion this year.
– Caution in Currency and Bond Yields Market –
The bond market remained cautious, awaiting the upcoming meetings of major central banks next week.
In Europe, the yield on the ten-year German “Bund” continued to hover around 3.03%, a level it jumped to at the start of the conflict.
The French equivalent moved to 3.68% from 3.65% the previous day.
The yield on the US ten-year rates increased from 4.30% to 4.32%.
The dollar gained 0.18% against the euro, reaching 1.1684 dollars per euro.
“There are simply too many unanswered questions at the moment to justify a clear trend for the dollar in either direction,” said Antje Praefcke of Commerzbank.
