1 day ago
Global Shares Mixed as Middle East Conflict Pushes Oil Higher
Stock markets around the world moved in different directions on Monday.
Some European and Asian markets fell, while others rose.
US stock futures also declined slightly.
Investors were concerned that the Federal Reserve might raise interest rates to lower inflation.
Oil became more expensive after US forces attacked Iranian rocket launchers near the Strait of Hormuz.
This raised fears that fighting in the Middle East could grow again.
Higher oil prices can make it more expensive for people and businesses to buy fuel.
Traders were reminded that a quiet period in the region does not necessarily mean the conflict is over.
European and Asian shares traded mixed, while US stock futures declined Monday.
Markets reacted to expectations that the Federal Reserve may raise interest rates to curb inflation.
Oil prices rose more than 3% after US forces struck Iranian rocket launchers near the Strait of Hormuz.
Brent crude increased 3.8% to $91.40 per barrel, while US crude reached $86.58.
Germany’s DAX fell 0.9%, while Shanghai gained 0.9% and South Korea’s Kospi rose 0.5%.
- Who
- Global investors, the Federal Reserve, US forces, and Iranian forces were central to the developments described.
- What
- World shares traded mixed while oil prices surged after US forces struck Iranian rocket launchers near the Strait of Hormuz.
- Where
- Markets in Europe, Asia, and the United States were affected; the military strike occurred near the Strait of Hormuz.
- When
- The market movements occurred Monday; the US strike was reported as occurring Sunday, after a Friday speech by Fed Chairman Kevin Warsh.
- Why
- Investors weighed possible US interest-rate increases to fight inflation and renewed concerns about Middle East conflict disrupting oil markets.
Key facts
- Brent crude
- Rose 3.8% to $91.40 per barrel early Monday.
- US crude
- Rose 3.8% to $86.58 per barrel.
- Germany’s DAX
- Fell 0.9% to 26,339.04.
- Shanghai Composite
- Gained 0.9% to 3,986.30.
- South Korea’s Kospi
- Rose 0.5% to 6,820.02.
- Hong Kong’s Hang Seng
- Declined 0.1% to 25,566.99.
- US stock futures
- S&P 500 and Dow Jones Industrial Average futures were each 0.2% lower.
Quotes
Stephen Innes
Stephen Innes is an analyst at SPI Asset Management.
“The Middle East had finally gone quiet enough for oil traders to start sanding some of the war premium out of crude. Then Sunday arrived, with a reminder that quiet in the Strait of Hormuz is not the same as peace.”
thehansindia.com
Sources
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