Check back for updates throughout the trading day
U.S. equity futures moved lower Friday, while oil prices whipsawed and save-haven assets rallied, following reports of an Israeli missile strike on Iran that rattled global markets and accelerated the region’s simmering military tensions.
Israel’s limited attack, however, appears to have targeted military installations south of Tehran and is unlikely, at least for the moment, to trigger a response from the Iranian government.
Officials on both sides, in fact, played-down the strikes, with Israel not claiming formal responsibility and Iran dismissing them as a failed effort by “infiltrators” that caused limited damage.
The muted tone eased global market tensions, which initially saw oil prices surge more past the $90 per barrel market before retreating to around $87.02 per barrel heading into the New York trading session.
Global investors were rattled by reports of Israel’s missile strike on Iran, but the limited scope of the attack appears to have calmed sentiment heading into the start of trading on Wall Street.
“The attack, but also the reaction across markets, shows that geopolitical risks are real and should be taken seriously by all investors,” Saxo Bank strategists wrote. “A further escalation between Israel and Iran could push energy prices higher and deal blow to economic growth and equity risk sentiment.”
Stocks in Asia suffered heavy losses, with the MSCI ex-Japan index falling 1.61% and Japan’s Nikkei 225 slumping 2.66%, but markets steadied in European trading, with the Stoxx 600 down just 0.39% in early Frankfurt dealing.
On Wall Street, U.S. Treasury bond yields eased from their recent multi-month highs, with 10-year notes slipping to 4.584% and 2-year notes pegged at 4.958%, as investors parked cash in save-haven assets while assessing the impact of the Iran-Israeli conflict.
Spot gold prices held near the $2,400 mark in overnight dealing, and were last pegged at $2,383.79 per ounce, around $40 shy of the all-time peak recorded on April 12.
The U.S. dollar index, which tracks the greenback against a basket of six global currency peers, was marked 0.12% lower at 106.024, suggesting improving risk appetite heading into the Friday session and the start of Passover observances on Monday.
More Wall Street Analysts:
Analyst unveils new Nike price target ahead of big summer for sportsAnalysts weigh in on Google-parent Alphabet’s stock after cloud eventAnalysts revamp Disney stock price target after proxy fight
The market’s key volatility gauge, however, remains elevated, with the VIX index trading at a five-month high of $19.45, a level that suggests traders expect daily swings for the S&P 500 of around 61 points over the next month.
Stock futures, meanwhile, are indicating a firmly lower open for U.S. markets, with contacts tied to the S&P 500 suggesting a 17 point decline and those linked to the Dow Jones Industrial Average indicating a 112 point pullback.
The tech-focused Nasdaq, meanwhile, is called 97 points lower, with Netflix (NFLX) set to slide more than 5.5% following a muted near-term revenue outlook that clouded a better-than-expected first quarter earnings report.
Tesla (TSLA) shares were also back in the red, falling 1.7% in pre-market dealing to pull the stock to the lowest levels in more than a year.
Related: Analyst overhauls Tesla price target amid major strategy shift
Paramount Global (PARA) shares, meanwhile, surged more than 10.2% to $12.09 each following a Reuters report that suggested private equity group Apollo Global Management is mulling a bid for the group alongside Sony Pictures Entertainment.
Related: Veteran fund manager picks favorite stocks for 2024
