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Oil climbs as escalation fears unsettle stocks

The prospect of renewed US military action against Iran lifted oil prices on Thursday, adding to worries about inflation and the outlook for interest rates. Wall Street ended Wednesday lower as bond yields rose, while Federal Reserve (Fed) meeting minutes signalled that most officials expected another rate increase before year-end. Asian markets also retreated on Thursday, with Samsung slipping despite record projected earnings as investors’ expectations outpaced the chipmaker’s strong profit growth.

  • Data
  • Autore Shane Strowmatt, Senior Investment Writer
  • Tempo di lettura 5 minuto

Oil
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Asian stocks decline as oil and yields rise

Asian equities fell on Thursday, with South Korea’s KOSPI losing 1.3%, Japan’s Nikkei 225 declining 0.6%, Hong Kong’s Hang Seng Index falling 0.8% and mainland China’s CSI 300 dropping 0.9%. Climbing oil prices and elevated US Treasury yields dampened demand for equities, with the two-year yield at 4.8% and the ten-year yield at 5.3%. Samsung shares fell 0.5% on Thursday as profit missed market expectations, despite estimated third-quarter operating profit at a record KRW 107.4 trillion, up 782% year-on-year and from KRW 89.5 trillion in the second quarter. Strong demand for artificial intelligence chips and constrained memory supply supported growth, while multiyear purchasing agreements improved visibility over future demand.

Oil rises as Iran escalation fears intensify

Brent crude oil futures rose 2.5% to USD 102.75 per barrel, while West Texas Intermediate (WTI) futures gained 2.3% to USD 90.29 as investors assessed risks to Middle Eastern oil supplies. US President Donald Trump expressed reluctance to pursue an agreement with Iran on Wednesday, while media reports indicated that Washington was considering renewed military action in the coming weeks. Houthi attacks on Saudi airports and Iranian attacks on tankers in the Strait of Hormuz heightened concerns about further disruption to shipping and energy infrastructure. Prices remained elevated despite a recovery in regional oil exports towards pre-conflict levels. The US Dollar Index was little changed at 102.26. Gold gained 0.5% to around USD 4130 per ounce, while bitcoin declined 1.6% to around USD 83,100.

US stocks fall amid interest rate concerns

US equities declined on Wednesday, with the Dow Jones Industrial Average falling 0.7% to 51,179.87 points. The S&P 500 lost 0.2% to 7801.77 points, while the Nasdaq-100 slipped 0.2% to 31,160.08 points, both retreating from record highs reached on Tuesday. Investors took profits as rising bond yields and elevated oil prices fuelled concerns about inflation and further Fed interest rate increases. Minutes from the Fed’s latest policy meeting showed that all 19 officials backed September’s rate increase, with many citing the risk of mounting inflationary pressure. Most policymakers also considered a further rate increase likely before year-end, but stressed that subsequent decisions would hinge on incoming economic data.

German industrial production rebounds

German industrial production rose by 2% month-on-month in August, reversing July’s revised 1.2% decline, according to seasonally and calendar-adjusted figures released on Wednesday by the Federal Statistical Office. Construction output jumped by 9.3% and machinery production increased by 5.3%, outweighing a 5.4% fall in automotive output, which partly reflected factory holidays being more concentrated in August than a year earlier. Energy-intensive industries remained weak, with output declining by 0.5% month-on-month and 2.1% year-on-year. European equities were mixed at Wednesday’s close: the Euro Stoxx 50 fell 1.4% and Germany’s DAX lost 1.4%, while the Swiss Market Index gained 0.1%.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from PepsiCo and Progressive.

Economic data in focus: German trade balance (08:00), European Central Bank monetary policy meeting minutes (13:30), US weekly initial jobless claims (14:30).

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