Stock Markets And Oil Prices Retreat

AFP/APP

New York: European and US stock markets experienced a downturn today as investors shifted their focus to corporate earnings, rising bond yields, and economic prospects for the US and China. The dollar strengthened against major currencies while oil prices fell.

Market analyst Patrick O’Hare from Briefing.com noted that rising Treasury yields are a significant concern, with the yield on 10-year US government bonds increasing to 4.24 percent from 3.73 percent a month ago.

He explained that this could either indicate a positive growth outlook that supports earnings or reflect worries about the budget deficit and renewed inflation pressures.

According to Steve Sosnick of Interactive Brokers, economic reports are causing investors to lose confidence in the likelihood of aggressive interest rate cuts, further bolstering the dollar’s position.

A notable factor in the markets is the so-called “Trump Trade,” which anticipates economic and political policies from a potential second Donald Trump administration.

Analyst Daniela Sabin Hathorn highlighted that betting odds currently favor Trump, with markets responding to expectations of increased public spending and inflation should he win.

Corporate earnings reports also influenced market movements. Boeing shares fell 1.8 percent following a $6.2 billion quarterly loss due to a six-week labor strike affecting its commercial division. In contrast, Tesla’s shares surged 8.1 percent in after-hours trading after reporting higher profits.

Internationally, shares of Tokyo Metro soared 45 percent in Japan’s largest initial public offering in six years. Meanwhile, McDonald’s shares dipped over 5 percent following reports of a severe E. coli outbreak linked to its Quarter Pounder hamburgers.

In commodities, gold reached a record high as investors sought safe-haven assets amid uncertainty surrounding the upcoming US presidential election and escalating geopolitical tensions in the Middle East.

Oil futures, however, dropped over 1 percent despite previous gains fueled by signs of increased demand in China.

Key Market Figures (as of 2030 GMT):

• New York:
  • Dow: DOWN 1.0% at 42,514.95 points (close)
  • S&P 500: DOWN 0.9% at 5,797.42 (close)
  • Nasdaq Composite: DOWN 1.6% at 18,276.65 (close)
• Europe:
  • London FTSE 100: DOWN 0.6% at 8,258.64 (close)
  • Paris CAC 40: DOWN 0.5% at 7,497.48 (close)
  • Frankfurt DAX: DOWN 0.2% at 19,377.62 (close)
• Asia:
  • Tokyo Nikkei 225: DOWN 0.8% at 38,104.86 (close)
  • Hong Kong Hang Seng Index: UP 1.3% at 20,760.15 (close)
  • Shanghai Composite: UP 0.5% at 3,302.80 (close)

Currency Exchange Rates:

• Euro/dollar: DOWN at $1.0787
• Pound/dollar: DOWN at $1.2929
• Dollar/yen: UP at 152.65 yen
• Euro/pound: UP at 83.41 pence

Commodity Prices:

• West Texas Intermediate: DOWN 1.9% at $70.78 per barrel
• Brent North Sea Crude: DOWN 1.4% at $74.99 per barrel