World shares fall, oil prices dip
World shares retreated, and oil prices fell back on Friday as the fragile ceasefire with Iran was strained by missile and drone attacks that prompted US retaliatory strikes on Iranian military facilities.
US futures rose despite the latest flare-up in the conflict. The future for the S&P 500 gained 0.5 per cent, while that for the Dow Jones Industrial Average was up 0.3 per cent.
Investors are closely watching the war situation as negotiations between the US and Iran to end the war make limited progress. Tehran said on Thursday that it was still examining the latest proposals from the US for ending the war.
In early European trading, Britain’s FTSE 100 fell 0.7 per cent to 10,206.38. Germany’s DAX shed 1 per cent to 24,417.08, while France’s CAC 40 dropped 0.8 per cent to 8,134.92.
Tokyo’s Nikkei 225 fell 0.2 per cent to 62,713.65 after closing the day before at an all-time high. Energy and technology giant SoftBank Group lost 4.6 per cent after soaring 18 per cent on Thursday.
Elsewhere in Asia, South Korea’s Kospi edged 0.1 per cent higher to 7,498.00, a record closing high, as gains for some tech shares offset wider losses. Hong Kong’s Hang Seng dropped 0.9 per cent to 26,393.71, and the Shanghai Composite index was unchanged at 4,179.95.
Australia’s S&P/ASX 200 lost 1.5 per cent to 8,744.40. Taiwan’s Taiex fell 0.8 per cent, while India’s Sensex declined 0.5 per cent.
Oil prices traded lower on Friday after rising earlier in the day. Brent crude, the international standard, dipped 0.2 per cent to USD 99.84 per barrel. Brent crude was roughly USD 70 a barrel before the Iran war began in late February.
Benchmark US crude fell 0.5 per cent to USD 94.34 a barrel. The US Central Command said on Thursday that it intercepted “unprovoked” Iranian attacks on Navy ships in the Strait of Hormuz, although no vessels were struck. But US President Donald Trump told reporters the ceasefire with Iran was still intact.
The United Arab Emirates, a US ally, said early Friday that its air defences were “actively engaging” with a missile and drone attack.
Oil and fuel prices are expected to remain elevated for as long as the Strait of Hormuz, a key waterway for oil and gas transit, remains largely closed, and a US sea blockade on Iranian ports continues.
On Thursday, US stocks pulled back from records. The benchmark S&P 500 fell 0.4 per cent, and the Dow industrials slipped 0.6 per cent. The technology-heavy Nasdaq composite dropped 0.1 per cent to 25,806.20.
Shares of Whirlpool sank 11.9 per cent following weaker-than-expected results, and Shake Shack tumbled 28.3 per cent likewise. McDonald’s fell 0.1 per cent after recording its latest quarterly revenue that was better than what analysts had expected.
The US dollar fell to 156.65 Japanese yen from 156.93 yen. The euro was trading at USD 1.1772, up from USD 1.1726.
