Global shares experienced a drop while oil prices soared on Friday due to growing concerns over the Israel-Hamas war. The conflict has led to an increase in bond yields, contributing to the retreat in the stock market. As tensions intensify, investors are worried about potential disruptions in the supply of petroleum, leading to a surge in oil prices.
The Israel Defense Forces (IDF) recently issued directives for hundreds of thousands of civilians residing in Gaza City to evacuate in anticipation of a potential ground offensive. The United Nations reported that Israel has also warned 1.1 million people living in northern Gaza to evacuate within 24 hours.
As a result of these concerns, the price of benchmark U.S. crude rose by $2.97, reaching $85.88 per barrel in electronic trading on the New York Mercantile Exchange. Similarly, Brent crude, the international standard, surged by $2.98, hitting $89.01 per barrel.
In the realm of share trading, the German DAX fell by 1% to 15,274.88 while the CAC 40 in Paris experienced a loss of 0.92%, reaching $7,039.45. Britain’s FTSE 100 also declined, down 0.6% at 7,600.63. Additionally, futures for the S&P 500 and the Dow Jones Industrial Average both suffered losses.
In Asia, Hong Kong’s benchmark index dropped significantly by 2.3% to 17,813.45 as investors were disappointed by the latest economic data from China. Other Asian markets were also affected by these concerns. South Korea’s Kospi index lost 1% to 2,456.15 after unemployment rates rose to 2.6% in September. Meanwhile, Japan’s Nikkei 225 index fell by 0.6% to 32,315.99, and Australia’s S&P/ASX 200 experienced a 0.6% decline to 7,051.00.
On Thursday, Wall Street reflected the mounting pressure from rising bond market yields. The S&P 500 fell by 0.6%, the Dow shed 0.5%, and the Nasdaq composite sank by 0.6%. These declines were influenced by weak results from a recent 30-year Treasury bond auction.
Moreover, a new reporting season for S&P 500 companies is underway, which is anticipated to mark a return to profit growth after three consecutive quarters of declines. Financial giants such as Citigroup, JPMorgan Chase, Wells Fargo, and UnitedHealth Group are among the companies reporting on Friday.
In currency trading, the U.S. dollar fell to 149.63 Japanese yen from 149.81 yen. The euro remained almost level with $1.0530, compared to $1.0531 late Thursday.
To conclude, the global share market experienced a decline while oil prices surged due to fears surrounding the Israel-Hamas war. The ongoing conflict has raised concerns about potential disruptions in the petroleum supply chain. Furthermore, economic data from China and rising bond yields have also contributed to investor unease. As the situation unfolds, investors will closely monitor the outcome of the conflict and its impact on global stability.
