On Friday, concerns about an escalation of tensions between Iran and Israel caused markets to react negatively. The Nikkei 225 index in Japan fell over 2.5 percent, while European stock markets recovered from morning losses throughout the day. Investors were already on edge due to a difficult week in the stock market, and the situation in the Middle East added further uncertainty.
Reports of an Israeli attack on Iran in response to a previous attack increased fears among investors. Although there were no immediate reports of damage, the possibility of a conflict in the Middle East and uncertainty about interest rate policies in the US caused concern among traders. The stock market, which had been struggling since early April, was further impacted by these uncertainties.
As the day progressed, tensions in the Middle East appeared to ease, leading to a slight recovery in European stock markets. However, concerns over inflation and future interest rate decisions remained hot topics in discussions among investors. Despite the initial market turmoil, some stock exchanges in Europe saw improvements by the end of the day, with Switzerland’s SMI index seeing gains.
On the stock market in Europe, Nestlé’s shares rose due to strong performance by L’Oréal, in which Nestlé owns a stake. Technology companies such as VAT and Logitech experienced losses, reflecting concerns about the upcoming earnings season for tech firms. Japanese markets also experienced a significant drop, particularly affecting semiconductor suppliers, while some shipping companies benefited from expectations of increased freight rates.
Although the record-setting trend in Japan may have temporarily ended, analysts are optimistic that economic strength and robust corporate profits could lead to a positive market response in the coming months. Overall, the global stock market was influenced by uncertainties surrounding the Middle East situation, interest rates, and earnings expectations for technology companies.