Equities Declined, Oil & Gold Jumped as Israel Hits Iran – Europe Market Wrap
Following Israel’s strike on Iran’s nuclear programme installations, tensions in the Middle East significantly increased, causing oil prices to soar and equities to plummet. Gold moved forward. After rising as much as 13% in the largest intraday advance since March 2022, Brent crude gained 8.3%. Futures for the S&P 500 fell 1.2% after reversing larger losses. With the 10-Yr note’s yield at 4.36%, US Treasuries saw minimal movement.
The dollar recovered 0.4% from Thursday’s three-year low, while gold surged 1% to its highest level in almost a month. The airstrikes against Iran’s ballistic missile and nuclear programmes have rekindled a standoff between two enemies that might turn into a larger war. Although crude oil had the biggest reaction, other market segments indicated that investors are keeping an eye on whether the situation would worsen and how long the tensions will remain.
Equity markets had just recovered from a decline in April brought on by Trump’s tariff war when the incident occurred. An international stock index set a new high Thursday, rising over 20% from a low in April.
Energy stocks surged in premarket trade on the strength of crude oil gains, with Exxon and Chevron both up more than 2.5%. Defence contractors like RTX and Lockheed Martin also rose on prospects of increased military spending. Travel stocks were under pressure.
