Despite an initial spike in oil prices reaching over $90 per barrel in the early morning hours, tensions eased as new information emerged resulting in the price dropping back below $87. A similar pattern was seen with European gas prices, which briefly rose to over 33 euros per megawatt-hour before settling back down to 31.8 euros. The same trend was observed with safe-haven assets such as the dollar and gold, with an initial surge at 4 am followed by a return to previous levels later on. European stock markets also showed signs of partial recovery, with Milan experiencing a slight decrease of 0.27%. However, markets in London and Frankfurt saw more negative trends for the week.
Asian markets experienced significant declines during the night, with Hong Kong and Tokyo indices dropping by 0.99% and 2.53% respectively. Japan’s index fell by 6% for the week. Futures were also negative for Wall Street, with the S&P500 and Nasdaq indices having seen five consecutive sessions of decline. S&P Global agency downgraded Israel’s long-term sovereign ratings from “AA-” to “A+” with a negative outlook, citing concerns that the ongoing conflict could have a more significant impact on the country’s economic parameters than previously anticipated. In other news, Apple removed Whatsapp and Threads by Meta Platforms from its app store in China due to national security reasons, while other Meta apps like Facebook, Instagram, and Messenger remain available. As a result, Meta Platforms’ stock decreased by 0.61% in pre-market trading.
Additionally, Apple’s stock remained unchanged during pre-market trading. Netflix also experienced a significant drop of 5.66% after releasing its quarterly earnings report. While the company exceeded expectations in terms of profits, revenues, and new subscribers for the first three months of the year, their guidance for the current quarter fell slightly short of expectations. This resulted in a negative reaction from investors, leading to a drop in the stock price. Despite these fluctuations, the overall market showed signs of stabilization as tensions eased and new information emerged, which helped calm investor sentiment and stabilize prices across various asset classes.
Overall, the global market scenario was characterized by volatile fluctuations, with oil and gas prices initially surging before retreating, safe-haven assets seeing temporary spikes, and European stock markets experiencing mixed results. Asian markets faced more significant declines, especially in Tokyo and Hong Kong, while Wall Street futures pointed towards a continuation of negative trends. The downgrading of Israel’s sovereign ratings and Apple’s removal of certain Meta apps in China added to the market’s uncertainty, resulting in varied reactions from investors. Despite this uncertainty, some tech companies like Apple and Netflix faced specific challenges related to their business operations, leading to fluctuations in their stock prices.
