Market indices register uncertainty globally after renewal of U.S.-Iran conflict

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Market indices posted mixed results in both American and Asian markets after the U.S. and Iran continued their hostile stance for the second day in a row. According to Bloomberg, oil prices remained elevated as U.S. President Donald Trump declared the ceasefire over. 

Shipping and crude oil volume through the Strait of Hormuz slowed even further on Thursday.

According to oilprice.com, crude prices now remain elevated. While registering no sign of clear increase at the time of writing, the prices of Brent crude, WTI Crude, and Murban Crude remained between $70 and $80 per barrel.

At the time of writing, Asian stock indexes showed growth in some benchmarks and regression in others by the following amounts (Source: TIKR terminal)

• ASX 200 -0.26%
• Nikkei +1.38%
• Nifty 50 +0.61%
• HSI -0.67%
• Shanghai +1.65%

The latest update represents a disruption to the efforts of governments to restore peace and a more stable price of oil. 

American markets struggled to show a clear pattern of growth or stagnation on Wednesday across all of its indices. While the tech sector managed to grow, all other sectors took a downturn. (Source: TIKR terminal)

• S&P 500 -0.31%
• NASDAQ +0.28%
• Dow Jones -1.07%
• Russell 2000 -0.91%

The NASDAQ was the only sector that managed to show some growth. On an ETF basis, the only sectors that grew were technology, semiconductors, and energy. 

• Technology +1.24%
• Health Care -1.30%
• Real Estate -1.65%
• Financials -1.93%
• Utilities -0.74%
• Communication Services -1.41%
• Consumer Discretionary -1.78%
• Consumer Staples -0.55%
• Industrials -1.07%
• Energy +1.76%
• Materials -2.62%
• Aerospace & Defense -2.24%
• Biotechnology -0.95%
• Medical Devices -1.89%
• REITs -1.39%
• Semiconductor +1.87%
• Software -1.75%

Summary

The renewal of conflict could spark instability in global oil markets again. In the view of SGFX research desk, negative effects for commodities are expected if the conflict continues, although the magnitude cannot be exactly confirmed. 

Research references

• Stock Market Today: Dow, S&P Live Updates for July 9 - Bloomberg
• US Military Targets Iran Again After Attacks in Strait of Hormuz - Bloomberg
• Crude Oil Prices Today | OilPrice.com
• TIKR terminal data

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