Stocks pulled back across Europe and Asia on Thursday after an early surge briefly sent Japan’s Nikkei 225 past the 60,000 mark for the first time. Meanwhile, oil prices climbed above $100 a barrel as investors grappled with fading hopes for renewed talks to end the ongoing conflict involving Iran.
US futures also slipped after Wall Street posted record highs a day earlier, buoyed by solid corporate earnings. Germany’s DAX fell 0.5 per cent to 24,064.00, while Paris’s CAC 40 inched up 0.2 per cent. Britain’s FTSE 100 dropped 0.8 per cent to 10,395.83. Futures for the S&P 500 declined 0.5 per cent, and Dow Jones Industrial Average futures were down 0.6 per cent.
In Asia, markets in Japan and South Korea briefly hit fresh highs, driven largely by gains in technology stocks. Tokyo’s Nikkei 225 ultimately fell 0.8 per cent to 59,140.23 after earlier reaching 60,013.98. South Korea’s Kospi ended 0.9 per cent higher at 6,475.81, having temporarily crossed the 6,500 level. The country also reported stronger-than-expected annual economic growth of 1.7 per cent for the first quarter, supported by robust exports, particularly semiconductors tied to the artificial intelligence boom.
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Elsewhere, Hong Kong’s Hang Seng dropped 1 per cent to 25,915.20, and Shanghai’s Composite index slipped 0.3 per cent to 4,093.25. Australia’s S&P/ASX 200 fell 0.6 per cent to 8,793.40. Taiwan’s Taiex edged down 0.4 per cent, while India’s Sensex declined 1 per cent.
Investor sentiment has been dampened by increasing uncertainty over any resolution to the Iran conflict, now in its eighth week. Although a ceasefire has been extended, it remains unclear if or when fresh negotiations might occur.
Tensions escalated after Iran targeted three vessels in the Strait of Hormuz following a US-imposed naval blockade on Iranian ports. The US has indicated the blockade will continue. Maritime traffic through the strait—previously responsible for about one-fifth of global oil shipments—remains largely disrupted, with prospects for reopening diminishing after Iranian forces seized two of the attacked ships.
Energy markets have reacted sharply to the disruption. Brent crude rose $1.81 to $103.72 per barrel, compared with roughly $70 before the conflict began in late February. US benchmark crude also gained $1.73, reaching $94.69 per barrel.
Analysts note that as hopes for progress fade, oil markets are being forced to adjust expectations. If the situation remains unchanged, investors may become less reactive to ongoing headlines that have recently driven price swings.
On Wall Street, strong earnings and the extended ceasefire helped push indexes to new highs on Wednesday. The S&P 500 climbed 1 per cent to 7,137.90, surpassing its previous record set days earlier. The Dow Jones Industrial Average rose 0.7 per cent to 49,490.03, while the Nasdaq composite jumped 1.6 per cent to 24,657.57, also setting a record.
Among notable movers, GE Vernova surged 13.7 per cent after reporting better-than-expected profits, supported in part by strong demand for equipment linked to data centres and AI infrastructure. Boeing gained 5.5 per cent, and Philip Morris International rose 7 per cent, both on stronger-than-forecast results.
In currency markets, the US dollar strengthened to 159.69 Japanese yen from 159.48 yen. The euro edged slightly lower to $1.1701 from $1.1705.
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