Stocks Trade Mixed as Oil Jumps on Mideast Crisis: Markets Wrap

(Bloomberg) — Stocks posted small moves and bond yields steadied with markets in a wait-and-see mood amid flaring tensions in the Middle East. Oil rose and gold hovered near a record. 

Europe’s Stoxx 600 index edged 0.2% higher, led by shares of energy firms and defense stocks including Saab AB and Rheinmetall AG. Futures on the S&P 500 fluctuated, while Treasury yields ticked up, with the 10-year around 3.74%. The dollar traded flat. 

Brent crude topped $75 per barrel after Iran’s ballistic missile barrage drew a vow of retaliation from Israeli Prime Minister Benjamin Netanyahu and raised the risks to crude supplies. The escalation in the region spurred a flight to safety on Tuesday and sent Wall Street’s fear gauge — the VIX — to a key level that usually indicates more market swings are in store. 

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In company news, JD Sports shares fell as much as 6%. A profit beat in the first half was countered by a weak update from its major partner Nike, which reported a sharp drop in sales and withdrew its guidance overnight.

Chinese stocks listed in Hong Kong, meanwhile, jumped the most in almost two years after Beijing followed other major cities in relaxing home purchase rules.  

Markets in mainland China remain shut for Golden Week. The Taiwanese stock market is also closed as Super Typhoon Krathon approaches the island. 

In political news, Republican JD Vance largely succeeded in sanding down his hardline reputation, while Democrat Tim Walz’s nerves were on display as the vice presidential candidates battled over immigration, abortion, and climate change during Tuesday’s debate. 

Key events this week: 

• S&P Global Manufacturing PMI on Wednesday
• Fed speakers include Richmond’s Thomas Barkin, Cleveland’s Beth Hammack, St. Louis’s Alberto Musalem and Fed Governor Michelle Bowman on Wednesday
• US nonfarm payrolls, Friday

Some of the main moves in markets:

Stocks

• The Stoxx Europe 600 rose 0.3% as of 8:49 a.m. London time
• S&P 500 futures were little changed
• Nasdaq 100 futures were little changed
• Futures on the Dow Jones Industrial Average fell 0.2%
• The MSCI Asia Pacific Index rose 0.4%
• The MSCI Emerging Markets Index rose 1.2%

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro was little changed at $1.1067
• The Japanese yen fell 0.4% to 144.16 per dollar
• The offshore yuan rose 0.1% to 7.0219 per dollar
• The British pound was little changed at $1.3288

Cryptocurrencies

• Bitcoin rose 1.7% to $61,835.75
• Ether rose 1.4% to $2,486.31

Bonds

• The yield on 10-year Treasuries advanced two basis points to 3.75%
• Germany’s 10-year yield advanced four basis points to 2.08%
• Britain’s 10-year yield advanced six basis points to 4.00%

Commodities

• Brent crude rose 2.6% to $75.47 a barrel
• Spot gold fell 0.3% to $2,654.08 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Rob Verdonck.

©2024 Bloomberg L.P.