Sturm 'Milton' presses share prices: Wall Street concerns about the Middle East

Sturm 'Milton' presses share prices: Wall Street concerns about the Middle East

The Wall Street is currently under pressure because geopolitical tensions in the Middle East dampen the risk of risk of investors. The large stock indices recorded falling courses on the first trading day of the week and the oil price shows only one direction: upwards. After positive labor market numbers on Friday, who had previously mitigated a possible recession in the country, military conflicts are now clouding the mood of investors.

After there were clear price gains at the end of the week, the dow-jones index lost 0.9 percent to 41,954 points, while the s & p-500 and the nasdaq composite gain 1.0 or 1.2 percent. Of the 2,070 corporate values on the New York stock exchange, 759 price gains had recorded, but the losers added up to 2,070. Analyst Jim Reid from Deutsche Bank noted: "The risk of risk was burdened by the increasing geopolitical risks in the Middle East, despite the positive economic data." Cooling influences also come through rising pension yields that also put a strain on the stock market.

rising oil prices and geopolitical risks

The tense political conditions are also noticeable in the oil market. On the anniversary of the Hamas attack on Israel, prices for the WTI and Brent varieties increased by about 4 percent. Markets fear that in the event of further conflicts, Israel may be forced to attack Iranian oil devices, which could provide even greater uncertainty.

In the meantime, the returns have increased at the bond market after strong surcharges have been observed beforehand. The yield of ten years of government bonds is now again above the 4 percent mark, which causes investors to anti-rate increase of 25 basis points in the next month. The environment seems to make an interest rate reduction, as was speculated in the past.

In addition, the insurance values have experienced a massive burden, since the hurricane "Milton" has strengthened to a storm in category 5 and is expected to meet Florida. Shares in the insurance sector are severely affected by this, and in the S&P 500 they lost 3.1 percent. The courses of renowned reinsurance companies such as Renaissancere and everest fell by 9.3 and 8.4 percent. First insurers also have to accept massive taxes, with companies like all -level , chubb and Travelers suffering from up to 4.9 percent.

In the middle of all these developments, the pharmaceutical company Pfizer was able to increase by 2.2 percent after it became known that an activist investor bought $ 1 billion. This type of investment could cause significant changes within the company. chevron meanwhile sold its shares in oil projects in Canada for $ 6.5 billion, which increased the shares by 0.3 percent.

The dynamics of the markets are still determined by different factors: an analyst comment put the titles of Amazon , which gave up 3 percent. In contrast to this, arcadium lithium made it to a remarkable increase of 35.4 percent, since takeover talks with the raw material giant rio tinto were placed in the room. The stocks of Super Micro Computer also increased by 15.8 percent because they speculate on high orders. At dupont , a gradation caused a loss of 1.8 percent.

The uncertainties in the markets adhere to both local and international factors that miss a clear picture of economic development. Effects on the stock exchange will continue to be observed, while investors have to adjust to the coming months that are shaped by geopolitical tensions.

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