Global markets are set to end the week lower following the escalation of conflict between Iran and Israel. However, crude oil surged, boosting global energy stocks, alongside a rally in the European defence sector. Stock markets on both sides of the Atlantic are poised to finish the week lower, as risk-off sentiment dominated amid escalating military conflict between Iran and Israel.
Crude oil prices surged, buoying energy stocks, while other sectors broadly experienced sell-offs. Chinese equities, however, are on track to post another strong weekly gain on the Hong Kong Exchange, as ongoing stimulus measures continue to fuel the rally. However, this optimism failed to lift other regional markets in Asia Pacific.
Major European benchmarks are in the red this week, with the Euro Stoxx 600 down 1.82%, the DAX falling 2.35%, the CAC 40 dropping 4.
03%, and the FTSE 100 slipping 0.46% weekly. The rally in European stock markets, spurred by Chinese stimulus policies, has lost momentum, with most sectors declining this week.
However, the escalation of the conflict in the Middle East has driven up energy and defence stocks. Luxury consumer stocks sharply retreated after last week’s surge. Over the past five trading days, LVMH has fallen by 5.
88%, Hermès by 5.71%, and Richemont by 2.31%.
Large-cap stocks also underperformed due to the prevailing risk-off sentiment. ASML shares dipped slightly for the week, SAP fell by 1.67%, and Novo Nordisk tumbled 5.
77% from last week. Conversel.