Stock exchanges hold up to new tensions in Iran. Milan -0.17% with oil above $100
Wall Street closes higher, DJ +0.63%, Nasdaq +1.23%
by Martina Soligo and Stefania Blasioli
Le ultime da Radiocor
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(Il Sole 24 Ore Radiocor) - The European stocks are withstanding the impact of the new tensions in the Middle East, after the failure of peace talks between the United States and Iran and the entry into force of the US military blockade of all maritime traffic in and out of Iranian ports. The US president, Donald Trump, wrote on Truth that 'if any ship' of the Iranian navy 'should approach our blockade zone, it will be removed immediately'. Still, the stock markets limited the damage, with the Ftse Mib ending down 0.17%.
According to Alex Everett, Investment director at Aberdeen Investments, the muted reaction of the markets partly reflects 'the expectation that Trump will tone down his threats again' and, more importantly, the stock markets 'are moving as if theextreme scenarios are not to be considered'. Markets, therefore, are pointing 'to a middle ground, with reduced tail risk, but without a full return to late February levels'. However, the continued closure of the Strait of Hormuz and the US naval blockade are fuellingdoubts about global energy logistics, pushing up energy commodity prices.
Wall Street closes up, DJ +0.63%, Nasdaq +1.23%
Wall Street closed positive. The Dow Jones rose 0.63 per cent to 48,217.26 points, the Nasdaq advanced 1.23 per cent to 23,183.74 points, and the S&P 500 advanced 1.02 per cent to 6,886.23 points.
Today, Goldman Sachs Group was down, despite the bank's solid overall earnings, due to deludent trading results recorded in its bond division.
The failure of negotiations in Islamabad, Pakistan, has rekindled fears that the war with Iran will drag on longer than expected, leading to higher oil prices, which will continue to strain economies around the world. Trump, who announced a naval blockade after negotiations failed, is considering resuming military strikes, according to a report in the Wall Street Journal. Hopes for a quick end to the war had helped the three major indices on Friday post their best week since November following the announcement of a two-week ceasefire between the US and Iran. The quarterly earnings season started as usual with the banks: after Goldman Sachs', those of Citigroup, Wells Fargo, JPMorgan Chase, Morgan Stanley and Bank of America are expected in the coming days.
