CNBC Daily Open: Middle East tensions send oil higher while Iran-U.S. tensions escalate
Concerns over supply disruptions pushed oil prices higher, amid news of recent deadly attacks on vessels in the Gulf of Oman and the Red Sea, and as a spill near Oman worsens.
European shares slipped from record highs on Wednesday, as investors digested earnings reports and events in the Middle East. The Stoxx 600 index closed 0.16% lower at 659.48 points, after a recent rally driven by strong earnings. Despite a hint of easing US inflation concerns and a potential Fed rate hike postponement, investors remain cautious about persisting high oil prices and stalled Middle East peace talks.
Martin Frandsen, a portfolio manager, warns that elevated energy prices could lead to wage demands and pressure corporate margins. Brent crude futures saw a 0.1% dip as traders considered Middle East talks progress and lower oil demand forecasts. The healthcare sector declined 1.2%, with EssilorLuxottica falling 4.3%. German privacy advocacy groups filed a complaint against Meta for its AI glasses.
The personal and household goods sector led losses, while aerospace and defense rallied as investors sought exposure to companies benefiting from geopolitical risk. Luxury shares dropped 2.9%, with Nokia surging 9.6% on positive US optical component earnings. Bilfinger fell 5.4% after cutting its full-year margin outlook. Vestas climbed 19.7% after raising its earnings margin forecast. TKMS and Kingspan both rose 8.5% and 7.6%, respectively, following outlook upgrades.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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