The Stock Exchange Paris loses 0.17% and Frankfurt 0.24% at the opening, while London fell 0.23% in early trading.
A Bruxellesthe BEL20 gained 0.08% in the first exchanges. The index is supported by 17 positive stocks, including Syensqo and D’Ieteren, which are up 1.55% and 1.05% respectively. On the losses side, ArgenX is in the lead with -3.46%.
Oil on the rise
The markets are “marked by reports that Israel is considering striking Iran’s oil facilities and that Joe Biden may let it happen”according to Ipek Ozkardeskaya, analyst for Swissquote Bank.
Oil prices took off by more than 5% on Thursday after Joe Biden’s remarks referring to ongoing “discussions” on possible Israeli strikes against Iranian oil infrastructure, after the missile attack launched Tuesday by Iran against Israeli territory.
Biden’s statement on possible strikes in Iran shakes up the oil market
Around 7:30 GMT, prices are still rising. The barrel of North Sea Brent for delivery in December trades around 77.88 dollars (+0.33% over one day). Its American equivalent, the barrel of West Texas Intermediate (WTI) with expiry in November, is up 0.39%, to $74.00. “Although the rise in oil prices is not expected to last long, it could impact the inflation outlook in the short to medium term”warns Ipek Ozkardeskaya.
A look at American employment
In addition to geopolitical issues, “all eyes are on the US employment release”notes John Plassard, investment specialist for Mirabeau. This highly anticipated United States government report on job creation in September in the country, private and public sectors combined, must be unveiled at 12:30 GMT.
Investors have been scrutinizing data on the state of the labor market in the United States for several weeks to assess the extent of the current slowdown in growth in the world’s largest economy. These indicators are decisive for assessing the pace and extent of future rate cuts that the American Federal Reserve (Fed) must carry out in the coming months in order to stimulate activity.
The day before, the activity indicator in the American services sector in September (ISM), which came out higher than expected by analyst consensus, has already “makes markets doubt the speed at which the Fed will lower its rates“, according to analysts at Deutsche Bank. An economy that slows less than expected reduces the need for rate cuts, which displeases the markets.
A 77% salary increase: the condition that annoys American dockworkers on strike since Monday
On the other hand, the markets should welcome with relief the end of the dockers’ strike in the United States announced Thursday evening, after an agreement between unions and employers. The blockade of ports in the United States threatened to cause shortages and price increases one month before the presidential election.
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