Uncertainty remains over the reopening of the Strait of Hormuz, as Iran expresses dissatisfaction with Israel’s continued attacks on Lebanon. Iran has accused the US and Israel of violating the ceasefire agreement, leading to the potential re-closure of the strait. US stock index futures are currently down between 0.3% and 0.4%; international oil prices have rebounded by more than 3%. Following a sharp rise in major Asia-Pacific stock markets the previous day, most markets softened today (October 9).
Major European stock markets showed weakness in early trading. The pan-European STOXX 600 Index fell 0.6% to 609.68 points. The UK FTSE 100 Index dropped 33 points, or 0.3%, to 10,575 points. France’s CAC declined 62 points, or nearly 0.8%, to 8,201 points. Germany’s DAX fell 289 points, or 1.2%, to 23,791 points. Italy’s FTSE MIB was down 121 points, or nearly 0.3%, to 46,970 points. Spain’s IBEX 35 Index dropped 93 points, or 0.5%, to 18,039 points.
Automotive stocks retreated, with Volvo Car falling 3.1%, Volkswagen and Mercedes-Benz each dropping 2.3%, and Porsche, BMW, and Stellantis declining between 1.1% and 1.4%.
Energy stocks rose alongside the rebound in international oil prices, with BP PLC gaining 2.3%, Shell and France’s TotalEnergies rising between 0.6% and 0.8%. Airline stocks were weaker, with British Airways parent company IAG down 0.5%, Air France-KLM slipping 1%, and Lufthansa dropping 3.7%.