Oil prices increased while major stock markets mostly declined on Thursday as investors reacted to concerns about the potential for a widening conflict in the Middle East and awaited a crucial US jobs report.
Wall Street shares were down in early trading, and the London, Paris, and Frankfurt stock exchanges were also in the red during afternoon deals.
Additionally, a strike by US dockworkers and speculation regarding the US Federal Reserve’s next move on interest rates influenced investor sentiment.
The dollar strengthened, benefiting from its status as a safe haven, while the British pound fell more than one percent against the dollar after Bank of England chief Andrew Bailey hinted at faster cuts to UK borrowing costs.
In Asia, the Tokyo stock market closed two percent higher as the yen stabilized. However, Hong Kong experienced its first decline in over a week following a sharp rise driven by China’s aggressive measures to stimulate its struggling economy.
The recent missile attack by Iran on Israel has heightened fears that the ongoing conflict between Israel and Tehran-backed Islamist militants in Gaza and Lebanon could escalate into a broader regional war.