Global Markets Fall Amid Middle East Tensions, Tech Earnings; Dublin Bucks Trend
Global markets fell Wednesday as oil prices surged due to Middle East tensions and investor caution ahead of US tech earnings and a Fed update. Dublin's Euronext bucked the trend, rising 1.1 per cent, led by Glanbia. Bond yields climbed in the Euro zone, while Wall Street was subdued.
Global markets declined Wednesday due to rising oil prices, fueled by US President Donald Trump's directive to prepare for an extended Iran blockade. US crude rose 5.22 per cent to $105.15 a barrel, and Brent climbed 5.3 per cent to $117.16. Investors also showed caution ahead of US tech earnings and a Federal Reserve policy update.
Euronext Dublin, however, rose 1.1 per cent. Glanbia soared 9.3 per cent after projecting full-year earnings per share growth at the upper end of its 7 per cent to 11 per cent range. Kerry Group gained 1.3 per cent, and Kingspan was up 1.5 per cent. AIB and Bank of Ireland increased 0.6 per cent and 1 per cent, respectively.
London's FTSE 100 dropped 1.2 per cent, with GSK falling 6.3 per cent and AstraZeneca 1.5 per cent. Housebuilders like Persimmon (-4.4 per cent) and Berkeley Group (-3.6 per cent) also declined due to inflation fears. DCC led risers, up 9.3 per cent, on news of a potential bid from Energy Capital Partners and KKR.
Euro zone bond yields reached multi-week highs, with 10-year yields briefly hitting 3.1 per cent and 2-year yields touching their highest since April 7th. European equities saw the Cac 40 fall 0.4 per cent, Dax 40 drop 0.3 per cent, and Stoxx Europe 600 decline 0.6 per cent.
Wall Street indexes were subdued. Robinhood Markets fell 14 per cent after missing profit expectations, while Starbucks rose 9.7 per cent on an increased annual profit forecast. Visa and Mastercard added 8.9 per cent and 3.8 per cent, respectively, after Visa raised its full-year earnings forecast.