NEW YORK (awp international) – Fears of an expansion of the Middle East conflict are likely to push US stock markets into the red on Monday. Around an hour before the start of trading, the broker IG estimated the leading index Dow Jones Industrial 0.38 percent lower at 33,282 points. The technology-heavy Nasdaq 100 is expected to be down 0.64 percent.
The Islamist Hamas launched surprise rocket attacks against Israel from Gaza on Saturday morning. At the same time, armed Palestinians advanced into Israel by land, sea and air and attacked people in several towns near the border. Fighting continues two days after the unprecedented attack.
The markets now see the risk of the conflict expanding. It is true that some countries, such as Saudi Arabia, have recently moved closer to Israel. However, relations with Iran are still bad. The country is also considered a supporter of Hamas. Iran is also located directly on the Strait of Hormuz, which is of considerable importance for the sea transport of crude oil.
Accordingly, oil prices rose significantly. In pre-market US trading, the shares of the oil companies Chevron and Exxon Mobil each gained almost three percent.
The shares of defense companies are also likely to be among the winners in this environment. The shares of Northrop Grumman and Lockheed Martin rose by four and five percent respectively in the premarket.
The three major US airlines suspended flights to Israel, while some Middle Eastern and European airlines continued to offer passengers an escape from the conflict region. As in Europe, airline stocks are likely to come under pressure on the other side of the Atlantic, as significantly rising oil prices tend to drive up kerosene costs. The shares of American Airlines, United Airlines and Delta Air Lines fell between two and three percent in premarket US trading.
Disney’s shares rose by a good one percent in pre-market trading. According to a newspaper report, activist investor Nelson Peltz is once again seeking more influence at the entertainment giant. After Peltz expanded his stake in Disney, he claimed several seats on the board of directors, the Wall Street Journal reported on Sunday, citing people familiar with the matter.
The pharmaceutical company Bristol Myers Squibb (BMS) wants to counteract the threat of patent losses for its top-selling drugs by taking over the cancer drug manufacturer Mirati Therapeutics. Mirati shareholders will receive, among other things, $58 per share in cash.
Shares of BMS fell more than 1 percent in premarket trading and shares of Mirati Therapeutics fell 6.5 percent to $56.30. They had already jumped on Thursday after the first rumors about a takeover began circulating. At the time, however, the French pharmaceutical company Sanofi was mentioned as an interested party./la/men
2023-10-09 12:42:36
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