Stocks edge lower as Middle East conflict pushes oil higher
Wall Street stocks finish lower
Oil prices settle up 5%
US dollar index hits six-week high
Safe-haven gold flat
Updates prices throughout with US market close, adds new analyst comment and remarks by President Biden
By Chibuike Oguh and Iain Withers
NEW YORK/LONDON, Oct 3 (Reuters) -Global stocks fell on Thursday, weighed by tepid trading in equity markets across the U.S. and other major regions, while oil prices jumped, buoyed by rising geopolitical tension from the Middle East conflict.
Wall Street's main indexes finished lower after trading slightly higher early in the session. Data released on Thursday showed rising U.S. jobless claims, indicating labor market softness, but strong service-sector activity. The closely watched nonfarm payrolls report for September is due on Friday.
The Dow Jones Industrial Average .DJI fell 0.44% to 42,011.59, the S&P 500 .SPX fell 0.17% to 5,699.94 and the Nasdaq Composite .IXIC fell 0.04% to 17,918.48.
European stocks finished down 0.93% .STOXX as investors digested weak business activity survey data from the bloc. MSCI's gauge of stocks across the globe .MIWD00000PUS fell 0.39% to 842.18.
Asia-Pacific shares outside Japan .MIAPJ0000PUS had earlier shed 1.3% overnight, largely driven by Hong Kong stocks .HSI sagging after a sizzling rally, with several markets, including mainland China and South Korea, closed for the day.
Japan's Nikkei .N225, however, ended up nearly 2% after the country's newly elected prime minister Shigeru Ishiba said it was not the time to raise interest rates after meeting with Bank of Japan Governor Kazuo Ueda.
Israel bombed Beirut early on Thursday following a year of clashes with Iran-backed Hezbollah. Asked if he would support Israel striking Iran's oil facilities, U.S. President Joe Biden told reporters on Thursday "we're discussing that." He added: "There is nothing going to happen today."
Brent crude futures LCOc1 settled up 5.03% at $77.62 a barrel. U.S. West Texas Intermediate (WTI) crude futures CLc1 settled up 5.15% to $73.71.
"The fact that energy is up where everything else is down pretty significantly is an indication that today's move is a lot about the escalating conflict in the Middle East," said James St. Aubin, chief investment officer at Ocean Park Asset Management in Santa Monica, California.
"There's probably some trepidation or maybe some hesitation about putting money to work ahead of tomorrow's jobs report."
Gold prices were flat as the U.S. dollar strengthened against major currencies. Spot gold XAU= fell 0.01% to $2,657.24 an ounce, while U.S. gold futures GCcv1 settled 0.4% higher at $2,679.2.
In currencies, the U.S. dollar index =USD rose to a six-week high, reaching 102.09, the highest since Aug. 19. It last rose 0.33% to 101.98. The euro was slightly down at $1.1026 EUR=EBS, and not far from Wednesday's low of $1.10325, a level last seen on Sept. 12.
Sterling GBP=D3 weakened 1.1% to $1.3122 after Bank of England Governor Andrew Bailey told the Guardian newspaper that the central bank could become a "bit more aggressive" on rate cuts if inflation continued to ease. Against the Japanese yen JPY=EBS, the dollar strengthened 0.1% to 146.61.
Treasury yields rose after the jobless claims data and service sector report. Two-year Treasury yields US2YT=RR were last up at 3.7095% on Thursday, while benchmark 10-year yields US10YT=RR were last up at 3.853%.
Markets imply a 35% chance the Fed will cut interest rates by another 50 basis points in November, compared with almost 60% last week, and have around 70 basis points of easing priced in by year-end. FEDWATCH
"There are some uncertainties as it relates to the U.S. election and in our near term there's some volatility as it relates to the Middle East and what's happening there," said Arun Daniel, portfolio manager at American Century Investments. "People are cautious. But from a long-term perspective, we're positive."
Reporting by Iain Withers in London and Chibuike Oguh in New York; Editing by Peter Graff, Matthew Lewis and Jamie Freed
Relaterade tillgångar
Senaste nytt
Ansvarsfriskrivning: XM Group-enheter tillhandahåller sin tjänst enbart för exekvering och tillgången till vår onlinehandelsplattform, som innebär att en person kan se och/eller använda tillgängligt innehåll på eller via webbplatsen, påverkar eller utökar inte detta, vilket inte heller varit avsikten. Denna tillgång och användning omfattas alltid av i) villkor, ii) riskvarningar och iii) fullständig ansvarsfriskrivning. Detta innehåll tillhandahålls därför uteslutande som allmän information. Var framför allt medveten om att innehållet på vår onlinehandelsplattform varken utgör en uppmaning eller ett erbjudande om att ingå några transaktioner på de finansiella marknaderna. Handel på alla finansiella marknader involverar en betydande risk för ditt kapital.
Allt material som publiceras på denna sida är enbart avsett för utbildnings- eller informationssyften och innehåller inte – och ska inte heller anses innehålla – rådgivning och rekommendationer om finansiella frågor, investeringsskatt eller handel, dokumentation av våra handelskurser eller ett erbjudande om, eller en uppmaning till, en transaktion i finansiella instrument eller oönskade finansiella erbjudanden som är riktade till dig.
Tredjepartsinnehåll, liksom innehåll framtaget av XM såsom synpunkter, nyheter, forskningsrön, analyser, kurser, andra uppgifter eller länkar till tredjepartssajter som återfinns på denna webbplats, tillhandahålls i befintligt skick, som allmän marknadskommentar, och utgör ingen investeringsrådgivning. I den mån som något innehåll tolkas som investeringsforskning måste det noteras och accepteras att innehållet varken har varit avsett som oberoende investeringsforskning eller har utarbetats i enlighet med de rättsliga kraven för att främja ett sådant syfte, och därför är att betrakta som marknadskommunikation enligt tillämpliga lagar och föreskrifter. Se till så att du har läst och förstått vårt meddelande om icke-oberoende investeringsforskning och riskvarning om ovannämnda information, som finns här.
