BANGKOK (AP) – Global stock markets experienced gains on Thursday, even as U.S. futures declined following Iran’s launch of additional missile strikes against Israel amid the ongoing conflict in the Middle East.
The Dow Jones Industrial Average futures fell by 0.2%, while the S&P 500 futures decreased by 0.1% as investors remained cautious about the implications of the war on financial stability.
Market Reactions to Oil Price Fluctuations
Financial markets have shown volatility in response to the war, with many traders closely monitoring oil prices. Crude oil prices rose early Thursday, with Brent crude increasing by 1.8% to $82.87 per barrel and U.S. benchmark crude climbing 2.1% to $76.31 per barrel.
Stephen Innes of SPI Asset Management commented on the situation, stating, “Yesterday’s bounce in risk assets already looks less like a turning point and more like a classic relief rally in a market that briefly inhaled before realizing the room was still on fire.”
Iran’s Military Actions and Regional Responses
The ongoing conflict has intensified with Iran’s recent missile attacks on Israeli and American military installations. Iran issued a stern warning to the United States, claiming it would ‘bitterly regret’ actions taken against an Iranian warship in the Indian Ocean, as tensions escalate further.
In response, Israel announced the initiation of a ‘large-scale’ military operation targeting Tehran, reflecting the growing hostilities in the region.
European and Asian Market Trends
In Europe, the DAX index in Germany rose by 0.2% to 24,253.24, while the CAC 40 in Paris increased by 0.3% to 8,194.80. Additionally, Britain’s FTSE 100 gained 0.4% to reach 10,609.63.
Asian markets also showed signs of recovery, with South Korea’s Kospi index rebounding by 9.6% to 5,583.90 after experiencing significant losses previously. The South Korean government introduced emergency measures to stabilize the economy after a historic drop in the stock market.
U.S. Economic Indicators and Market Sentiment
On Wednesday, U.S. stock markets received a temporary boost as oil prices stabilized. Reports indicated an acceleration in growth for U.S. businesses in the real estate, finance, and other service sectors, the fastest pace since summer 2022.
The S&P 500 increased by 0.8%, recovering a portion of its losses since the conflict began. Notably, Big Tech stocks like Amazon and Nvidia contributed to this upward momentum.
Currency Fluctuations Amid Market Uncertainty
In early Thursday trading, the U.S. dollar rose to 157.16 Japanese yen from 157.07 yen, while the euro fell to $1.1623 from $1.1636. Analysts attribute the dollar’s strength to perceptions of reduced risk in the U.S. compared to other nations affected by the conflict.
Innes remarked, “When the world becomes less certain, capital gravitates toward the deepest pool of liquidity available,” suggesting that the dollar is viewed as a safe haven during turbulent times.