Precise Investors Editorial Team
MSCI’s broadest index of Asia-Pacific shares outside Japan reversed early losses to gain 0.46% and was set to end the week with a nearly 1% gain
Global shares swung between gains and losses on Friday and oil prices resumed rise, as a shaky ceasefire in the Middle East war and stalled U.S.-Iran peace talks gave investors little to cheer and dampened the market sentiment.
MSCI’s broadest index of Asia-Pacific shares outside Japan reversed early losses to gain 0.46% and was set to end the week with a nearly 1% gain. Nikkei rose 0.85%, stocks in South Korea and China dropped, while those in Hong Kong were little changed.
Futures pointed to a dour opening in Europe, as EUROSTOXX 50 futures slipped 0.7% and FTSE futures shed 0.76%, while DAX futures eased 0.25%.
Nasdaq futures added 0.4% while S&P 500 futures were flat.
The mixed showing underscored the tense market mood as investors this week seesawed between hope for an imminent end to the war and fear that it might not come soon.
The thing is, a ceasefire is a funny term to use in conjunction with a blockade and rolling tensions and animosities, said Vishnu Varathan, Mizuho’s head of macro strategy for APAC.
Iran on Thursday flaunted its tightened grip over the key Strait of Hormuz with a video of commandos in a speedboat storming a huge cargo ship.
It’s not going to be a linear de-escalation of violence and oil prices and volatility around the entire supply shock, said Varathan.
Investors have just been looking for excuses to put on optimistic trades opportunistically. I don’t think anybody in the market truly believes that this will be over in a week or two, he said.
In oil markets, prices rose as the stand-off in the Strait of Hormuz persisted.
Brent crude futures were up 0.55% to $105.65 a barrel.
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