Global stock markets ended mostly lower on Thursday, reflecting their nervousness over the latest developments in the Middle East, with only some corporate earnings results providing a glimmer of optimism.
In New York, following a double record for the Nasdaq index and the broad S&P 500 index, they fell by 0.89% and 0.41% respectively. The Dow Jones also dropped by 0.36%.
In Europe, the session was slightly more disordered. Paris advanced by 0.87%, London retreated by 0.19%, Frankfurt declined by 0.16%, and Milan gained 0.26%.
At the center of concerns, the Brent crude oil, the international reference for oil prices, continued to climb above $100 per barrel, reaching $105.07 (+3.10%).
Its American counterpart, WTI, followed the same trend, closing at $95.85.
“The nervousness of investors is increasing day by day, as the situation in the Middle East remains uncertain,” said Andreas Lipkow at CMC Markets in Frankfurt.
According to him, oil prices reflect “very clear inflationary signals.”
The Strait of Hormuz remains blocked by both Americans and Iranians, with no signs of a quick reopening for essential commodities to the global economy such as oil, gas, and fertilizers.
U.S. President Donald Trump stated on Thursday that he has “all the time in the world” in the Middle East conflict, where the ceasefire between Tehran and Washington has been hanging by a thread for the past two weeks.
No progress has been observed in organizing discussions between the two enemy countries.
“We do not know what decisions Trump will make, and that is the risk factor,” summarized Antoine Andreani, a financial analyst for the online investment platform XTB, for AFP.
The head of state mentioned he has no intention of using nuclear weapons against Iran.
– L’Oréal, STMicroelectronics, and Texas Instrument in good shape –
Another focus of the markets was the quarterly performance of companies, which brought some movements.
In Paris, investors flocked to the cosmetics giant L’Oréal as it reported better-than-expected results in the first quarter (+8.97%, €375.85 per share).
In the same city, the microprocessor manufacturer STMicroelectronics outperformed L’Oréal (+14.44%, €42.87), stating they are strategically positioned to capture the growth potential of new AI programs, announcing a substantial increase in revenue in the first quarter but a decrease in net profit.
On Wall Street, the electronic components specialist Texas Instruments surged by nearly 20% to $282.23.
With better-than-expected results in the first three months of the year, the company expects its earnings per share this quarter to range between $1.77 and $2.05, compared to the analysts’ estimate of $1.57.
However, the electric vehicle specialist Tesla (-3.56%, $373.72) failed to capitalize on its better-than-expected results. Investors penalized the company for its expected high expenses, estimated at $25 billion this year.
– Cautious currencies and bond yields –
The bond market remained cautious, awaiting the meetings of major central banks next week.
In Europe, the yield on the German 10-year Bund continued to approach 3% (3.03%), a level it surged to at the start of the conflict.
Its French equivalent rose to 3.68% from 3.65% the previous day.
The yield on the U.S. 10-year bonds increased from 4.30% to 4.32%.
The dollar gained 0.18% against the euro, at $1.1684 for a euro.
“For now, there are simply too many unanswered questions to justify a strong trend of the dollar in either direction,” said Antje Praefcke from Commerzbank.
