Latest news with #GeopoliticalTensions
Forbes
a day ago
- Business
- Forbes
Dow Drops 600 Points: Biggest Loss In 3 Weeks As Iran-Israel Conflict Escalates
Geopolitical concerns returned to Wall Street after Israel struck Iran in a move President Donald Trump indicated the U.S. was aware of, causing stocks to slump and oil prices to shoot higher Friday, and impacting these stocks the most. Friday is on pace to be the largest loss for the Dow in three weeks. All three major U.S. indexes fell shortly after market open: The bluechip Dow Jones Industrial Average slipped 1.3%, or 610 points, the S&P 500 dropped 1% and the tech-heavy Nasdaq also declined 1%. Friday is on pace to be the worst day since May 21 for each benchmark. Stocks dropped worldwide on the heightened tensions, as Europe's Stoxx 600, Japan's Nikkei 225 and Hong Kong's Hang Seng indexes each fell more than 0.5% Friday. Non-equity markets flashed signs of a far weaker risk appetite for investors. Gold prices shot up nearly 2% to about $3,460 per troy ounce and Brent crude oil prices spiked 7% to $74 per barrel, while cryptocurrency tokens bitcoin and ether slumped 1% and 4% in the 24-hour period ending 9:30 a.m. EDT, respectively. Read more on the latest developments on the Israel-Iran conflict here. The Chicago Board Options Exchange's volatility index, or VIX, surged 11% to a three-week high Friday. The metric, often referred to as Wall Street's fear gauge, tracks the market's expectations for significant stock market swings via S&P options contract activity over the next 30 days. Among the notable U.S. stocks sliding at least 0.5% Friday were Amazon, Apple, American Express, JPMorgan Chase, Nvidia, Tesla and Visa. Shares of American energy giants Exxon Mobil (up 2%), Chevron (up 2%) and ConocoPhillips (up 3%) all enjoyed a significant boost from the oil price spike. Should gains hold, Friday will be the largest single-day increase in oil prices since March 2022, during the early stages of Russia's invasion on Ukraine. Brent crude is up 15% over the last two months. Unlike the 2022 episode in which higher oil prices on geopolitical conflict translated into soaring inflation, the Iran-Israel confrontation is unlikely to result in significantly higher prices in the U.S., according to Marko Papic, chief strategist at BCA Research. 'Any inflationary spike from oil prices would be temporary and highly unlikely to invite any action from global central banks,' Papic wrote in a late Thursday note to clients. The Federal Reserve hiked rates from near zero to more than 5% between March 2022 and August 2023 in response to the inflation episode partially linked to the Russian invasion and its impact on commodity prices.
Argaam
a day ago
- Business
- Argaam
Gold extends gains, Bitcoin falls amid escalating ME tensions
Gold prices climbed while Bitcoin dropped on Friday, as geopolitical tensions intensified in the Middle East following Israeli airstrikes on Iran. Gold futures for August delivery rose by 1.4%, or $47.50, to $3,449.90 as of 7:52 am KSA time. Spot gold also gained 1.10%, or $37.29, to reach $3,423.21 per ounce. Silver futures for July delivery increased slightly by 0.18% to $36.36, while spot platinum fell by 1.29% to $1,281.90. Meanwhile, the US Dollar Index added 0.41% to 98.33 points. On the other hand, Bitcoin (BTC) dropped 2.18% to trade at $104,483. Ethereum (ETH) fell 7.59% to $2,512.56, and Ripple (XRP) dipped 2.79% to $2.1248. This followed large-scale Israeli airstrikes on Iran at dawn today, which the Israeli government said targeted Tehran's nuclear program and military capabilities, amid growing concerns over a potential Iranian retaliation that could lead to further escalation.
Asharq Al-Awsat
2 days ago
- Business
- Asharq Al-Awsat
Israeli Assets Slide as Regional Tensions Escalate
The cost of insuring Israel's debt against default rose on Thursday, and its bond prices and stock indexes slid, as regional security concerns spiked and the country's own government wobbled. Israel's five-year credit default swaps rose nine basis points (bps) from Wednesday's close, to reach 107 bps, according to S&P Global Market Intelligence, while its international dollar bonds slid more than 1 cent, Reuters reported. The 100-year issuance, which matures in 2120, shed more than 1.3 cents before retracing some of the loss to be bid at 67 cents on the dollar, Tradeweb data showed. "A possibility of a more pronounced geopolitical deterioration may take its toll on the local economy and the fiscal deficit, and also make it more challenging for Bank of Israel to lower its rates later this year," said Ronen Menachem, chief markets economist with Mizrahi Tefahot Bank. The United States has restricted government employees' travel outside certain Israeli cities, and pulled some personnel out of the Middle East, due to escalating tensions with Iran. Benjamin Netanyahu more time resolve its worst political crisis yet and avoid a ballot that polls suggest he would parliament rejected early on Thursday a preliminary vote to dissolve itself, giving the ruling coalition led by Prime Minister Israel's stocks also slid, with the blue-chip and the broader indexes down roughly 2%. The shekel currency fell just less than 1% versus the US dollar, to 3.56, but remained up 2% year to date. Still, Menachem noted that local indexes are near all-time highs, and assets have rebounded from other recent security related declines. Markets broadly moved into risk-off mode, with oil prices spiking and fixed income instruments in other emerging markets coming under downward pressure.
Yahoo
2 days ago
- Business
- Yahoo
European shares tumble as trade, geopolitical tensions mount
(Reuters) -European shares dropped on Thursday, in their fourth straight session of declines, as trade optimism stemming from U.S.-China trade talks faded, while mounting geopolitical tensions led to the markets being more cautious. The pan-European STOXX 600 was down 0.4% at 549.41 points at 0707 GMT, while most regional bourses were also in the red. U.S. President Donald Trump said on Wednesday that he was willing to extend the deadline for trade talks but it was not likely necessary as the U.S. will send offer letters to countries in a week or so. However, markets were a little concerned about the European Union being able to clinch a deal before Trump's July 8 deadline - when the tariff pause expires. Geopolitical worries added more caution to markets already navigating U.S. tariff-driven uncertainty after trade talks with China did not offer a solution to de-escalate longstanding tensions. U.S. personnel were being moved out of the Middle East because "it could be a dangerous place" amid rising tensions with Iran, Trump said on Wednesday. In the market, travel and leisure stocks were the worst hit, down 1.7%, while industrial miners fell 1.1%. Among stocks, BE Semiconductor Industries (BESI) jumped 7.7% after raising its long-term financial targets ahead of its investor day. Tesco gained 1.3% after Britain's biggest food retailer's domestic sales growth accelerated in its first quarter.
Reuters
2 days ago
- Business
- Reuters
European shares tumble as trade, geopolitical tensions mount
June 12 (Reuters) - European shares dropped on Thursday, in their fourth straight session of declines, as trade optimism stemming from U.S.-China trade talks faded, while mounting geopolitical tensions led to the markets being more cautious. The pan-European STOXX 600 (.STOXX), opens new tab was down 0.4% at 549.41 points at 0707 GMT, while most regional bourses were also in the red. U.S. President Donald Trump said on Wednesday that he was willing to extend the deadline for trade talks but it was not likely necessary as the U.S. will send offer letters to countries in a week or so. However, markets were a little concerned about the European Union being able to clinch a deal before Trump's July 8 deadline - when the tariff pause expires. Geopolitical worries added more caution to markets already navigating U.S. tariff-driven uncertainty after trade talks with China did not offer a solution to de-escalate longstanding tensions. U.S. personnel were being moved out of the Middle East because "it could be a dangerous place" amid rising tensions with Iran, Trump said on Wednesday. In the market, travel and leisure stocks (.SXTP), opens new tab were the worst hit, down 1.7%, while industrial miners (.SXPP), opens new tab fell 1.1%. Among stocks, BE Semiconductor Industries (BESI) ( opens new tab jumped 7.7% after raising its long-term financial targets ahead of its investor day. Tesco (TSCO.L), opens new tab gained 1.3% after Britain's biggest food retailer's domestic sales growth accelerated in its first quarter.
