2024-04-19 10:08:48
Fears of an extension of the conflict between Iran and Israel are worrying the markets in Europe and Asia. The stock exchanges in Switzerland and Europe lose between 0.5 and 1.2 per cent, Japan’s leading index Nikkei 225 falls by more than 2.5 per cent.
Following reports of explosions in Iran, stock markets in Europe and Asia fell significantly in some cases.
At the end of an already difficult stock market week, the latest developments in the Middle East have once once more excited investors. According to consistent US media, Israel has Iran attacked in response to a major attack last weekend. There were initially no reports of injuries. It remains to be seen if and how Iran will react.
“There are two fears driving investors this Friday morning: the fear of a fire in the Middle East and the fear of a rate hike instead of a cut in the US later in the year,” is how one European trader sums up. Current situation. “A combination so toxic for a stock market that has been in trouble since the Easter weekend in early April.”
In an initial reaction, oil prices rose, but have recovered somewhat. Nevertheless, the issue of inflation and consequently further interest rate policy for the markets in Europe and abroad will probably remain a hot topic.
Nestlé as one of the few winners
The Swiss leading index SMI lost 0.55 percent to 11,169 points around 11:30 am. The broad SPI fell by 0.62 percent to 14,816 points. On the most important European stock exchanges, the German DAX, the British FTSE 100 and the French CAC 40 are down by up to 1.0 percent. Initial losses are also expected for Wall Street.
The fact that SMI is holding up slightly better than its counterparts is mainly due to Nestlé’s share price rise (+0.9 per cent). They owe the increase primarily to the strong figures from cosmetics manufacturer L’Oréal, whose shares in France rose by 4.8 percent. Nestlé owns a stake in L’Oréal.
The two technology representatives VAT (-2.2 per cent) and Logitech (-1.4 per cent) are among the biggest losers. Temenos, Inficon, AMS-Osram and U-Blox fell between 2.3 and 0.6 percent. The quarterly results presented so far this week by the world’s leading chipmakers and their suppliers have not yet been convincing. Rather, they have set the tone for a – perhaps – difficult earnings season for the technology companies, says the trade.
Significant losses in Japan’s stock market
Fears of an escalation of the Middle East conflict led to a deep fall in Japan’s stock market on Friday. The Nikkei 225 share price index fell by 2.66 percent to 37,068 points. Japan’s leading index temporarily fell below 37,000 points for the first time since February 9. The broader weighted Topix index fell 1.9 percent.
As in Europe, shares of Japanese suppliers to the global semiconductor industry in Japan were particularly hurt. Plant producer Tokyo Electron lost more than 8 percent in value. Lasertec, a maker of measuring instruments, also lost more than 8 percent. However, shipping companies such as Yusen and Mitsui were among the winners. Their shares are rising as investors bet on higher shipping rates and thus profits for logistics companies as the threat of war increases.
The Korean stock index Kospi also lost over 1.6 percent. However, other exchanges in Asia such as Singapore and Hong Kong had only small losses. The Shanghai stock exchange, which was more characterized by internal Chinese developments, fell by 0.6 percent.
This means that the record hunt in Japan is over for the time being. But analysts believe so far that the weakness is temporary. Before the collapse, strategists at Japanese investment bank Nomura assessed that markets might respond “favorably to economic strength and robust corporate profits” once more from May onwards.
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