On Thursday, global markets delivered mixed results because of ongoing tensions in the Middle East. Brent crude oil was thrust to $77 per barrel, a 4% boost in anticipation of potential Israeli retaliatory strikes on Iran’s oil industry due to recent missile attacks.
Dublin
The Iseq Overall Index in Dublin ended Thursday with a 0.86% increase. Despite some losses in Ryanair and AIB (down by 0.81% and 0.78% respectively), Bank of Ireland’s minor rise kept the index buoyant. Kingspan, the insulation company, had shares close at €80.85, down 2.53% on Thursday. House builders Cairn Homes and Glenveagh Properties showed some growth, their shares grew by 1.22% and 1.40% respectively.
London
In London, the FTSE 100 slightly slipped, with losses from mining shares counterbalanced by a promising day for energy firms. Moreover, Tesco, the largest supermarket chain in England, surged after projecting higher annual profits. The FTSE 100 declined by 0.1% and the FTSE 250 index fell by 0.2%. Shares in heavyweight mining firms trailed due to concerns about conflicts in the Middle East and an assertive US dollar stirring doubts about stimulus-driven demand in China. The likelihood of the Federal Reserve slashing the interest rate by another 0.5% led to a decline in gold prices. Simultaneously, the Bank of England’s governor, Andrew Bailey, proposed the possibility of faster interest rate cuts if inflation news is favourable.
Europe
European shares retreated as investors hesitated in their risk-taking due to the heightened political unrest in the Middle East. Most sectors, barring energy behemoths, registered declines. The pan-European Stoxx 600 index concluded the day 0.9% lower, marking the lowest point in over a week. The majority of regional markets experienced slumps, with Germany’s DAX and France’s CAC 40 each plunging by over 1%.
In the car industry sector, there was a 2.1% fall, with Stellantis’s shares listed in Milan dropping by 4%. The construction and materials industry likewise experienced a 2% drop, largely due to a 4.8% decrease in the French company Bouygues, which reduced its sales and profit forecasts for 2026.
In New York, Wall Street’s key indexes displayed mixed results on Thursday as data revealed strong activity in the service sector of the world’s most prolific economy. However, investors remain wary of potential escalations in the ongoing conflict in the Middle East.
The S&P 500, a primary market index, minimised losses after a survey by the Institute for Supply Management indicated that service sector activity, constituting the majority of the US economy, was at 54.9 in September. This surpasses the estimated 51.7, as predicted by the economists interviewed by Reuters.
Contrastingly, separate data demonstrated a slight increase in weekly unemployment claims, with the nonfarm payroll report for September becoming the next focal point.
Chances of a 0.25% reduction in the Federal Reserve’s November meeting have risen to 64.9% from 50.7% a week ago, as suggested by the CME Group’s FedWatch Tool.
The Dow Jones Industrial Average fell 0.32%, while the S&P 500 added 0.1%, and the Nasdaq Composite increased by 0.45%.
Apart from the oil sector movements and concerns surrounding an expanding conflict in the Middle East, a labour strike on the US East and Gulf coasts has reached its third day. According to Morgan Stanley economists, sustained halt in work could escalate consumer prices, with food prices predicted to react the quickest.
The chief market strategist at B Riley Wealth, Art Hogan, remarked that “Presently, market players are focusing on three aspects: Middle East tensions, the duration of the longshoremen’s strike, and its potential inflationary effects.”. Further details were provided by various agencies.