HONG KONG — World shares retreated and oil prices fell back Friday as the fragile ceasefire with Iran was strained by missile and drone attacks that prompted U.S. retaliatory strikes on Iranian military facilities.
U.S. futures rose despite the latest flare up in the conflict. The future for the S&P 500 gained 0.5 per cent, while that for the Dow Jones Industrial Average was up 0.3 per cent.
Investors are closely watching the war situation as negotiations between the U.S. and Iran to end the war make limited progress. Tehran said Thursday that it was still examining the latest proposals from the U.S. for ending the war.
In early European trading, Britain’s FTSE 100 fell 0.7 per cent to 10,206.38. Germany’s DAX shed 1 per cent to 24,417.08, while France’s CAC 40 dropped 0.8 per cent to 8,134.92.
Tokyo’s Nikkei 225 fell 0.2 per cent to 62,713.65 after closing the day before at an all-time high. Energy and technology giant SoftBank Group lost 4.6 per cent after soaring 18 per cent on Thursday.
Elsewhere in Asia, South Korea’s Kospi edged 0.1 per cent higher to 7,498.00, a record closing high, as gains for some tech shares offset wider losses.
Hong Kong’s Hang Seng dropped 0.9 per cent to 26,393.71 and the Shanghai Composite index was unchanged at 4,179.95.
Australia’s S&P/ASX 200 lost 1.5 per cent to 8,744.40. Taiwan’s Taiex fell 0.8 per cent, while India’s Sensex declined 0.5 per cent.
Oil prices traded lower Friday after rising earlier in the day. Brent crude, the international standard, dipped 0.2 per cent to US$99.84 per barrel. Brent crude was roughly $70 a barrel before the Iran war began in late February.
Benchmark U.S. crude fell 0.5 per cent to $94.34 a barrel.
The U.S. Central Command said Thursday that it intercepted “unprovoked” Iranian attacks on Navy ships in the Strait of Hormuz, although no vessels were struck. But U.S. President Donald Trump told reporters the ceasefire with Iran was still intact.
The United Arab Emirates, a U.S. ally, said early Friday that its air defenses were “actively engaging” with a missile and drone attack.
Oil and fuel prices are expected to remain elevated for as long as the Strait of Hormuz, a key waterway for oil and gas transit, remains largely closed and a U.S. sea blockade on Iranian ports continues.
On Thursday, U.S. stocks pulled back from records. The benchmark S&P 500 fell 0.4 per cent and the Dow industrials slipped 0.6 per cent. The technology-heavy Nasdaq composite dropped 0.1 per cent to 25,806.20.
Shares of Whirlpool sank 11.9 per cent following weaker-than-expected results, and Shack Shack tumbled 28.3 per cent likewise. McDonald’s fell 0.1 per cent after recording latest quarterly revenue that was better than what analysts had expected.
The U.S. dollar fell to 156.65 Japanese yen from 156.93 yen. The euro was trading at US$1.1772, up from $1.1726.
Chan Ho-him, The Associated Press
