Oct 3 2024: European stock markets experienced a dip on Thursday as investor sentiment was dampened by escalating Middle East conflicts, while regional economic activity data awaited release.
At 03:05 ET (07:05 GMT), Germany’s DAX index dropped 0.4%, and France’s CAC 40 declined 0.3%, though the U.K.’s FTSE 100 bucked the trend, gaining 0.3%.
Middle East Conflict Escalation Rising concerns over the intensifying violence in the Middle East have weighed heavily on global markets. Israel continues to target Iran-backed Hezbollah forces in Lebanon, and in retaliation, Iran launched around 180 ballistic missiles at Israel on Wednesday. While Tehran signaled it would halt further attacks barring additional provocation, Israel and the U.S. vowed strong retaliatory measures.
The escalation has led analysts to factor in the risk of a broader conflict potentially involving the U.S., creating further uncertainty in the markets.
Crude Oil Prices Surge Amid concerns of disrupted oil supply from the Middle East, oil prices surged. By 03:05 ET, Brent crude rose 1.3% to $74.89 per barrel, while U.S. West Texas Intermediate (WTI) gained 1.6%, trading at $71.19 per barrel.
Adding to market dynamics, the Energy Information Administration reported a 3.9 million-barrel increase in U.S. crude inventories for the week ending Sept. 27, contrasting with expectations of a 1.3 million-barrel draw.
Services PMI Data Expected Investors are also looking ahead to the release of services PMI data across Europe, expected to show a further slowdown in economic activity, reinforcing market expectations for interest rate cuts in the region. Meanwhile, recent data indicated that eurozone unemployment remained steady at a record-low 6.4% in August.
Tesco Raises Full-Year Profit Guidance In corporate news, British supermarket giant Tesco upgraded its full-year profit outlook following robust half-year results. Tesco’s stock (LON: TSCO) climbed more than 1% as CEO Ken Murphy pointed to strong volume growth driving financial performance.
Tesco’s upward revision comes at a time of broader uncertainty for the stock market, as investors remain cautious amid surging valuations and global tensions. However, companies like Tesco are seen as more resilient to market volatility, offering potential opportunities for investors.
