Global stocks slip with earnings and US-Iran tensions in focus

US futures and European stocks fell on Thursday as investors zeroed in on company earnings while ‌tensions between the United States and Iran kept markets on edge and supported oil prices and gold.

Europe’s STOXX ​600 index dropped 0.6% as shares in planemaker Airbus and miner Rio Tinto slid after their earnings reports ‌underwhelmed the market.

The index hit a ‌record the previous day as a rally in defence and banking shares helped investors shake off worries about artificial intelligence disrupting companies.

Futures for the US S&P 500 and tech-focused Nasdaq fell 0.34% and 0.44%, respectively, as the volatility driven by worries about disruption ‌from A.I. appeared to continue.

Investors were digesting earnings, including from Walmart , which was down in pre-market trading after forecasting annual sales and profit below expectations.

Wall Street rallied on Wednesday, driven by Nvidia saying it signed a multi-year deal to sell Meta Platforms millions of artificial intelligence chips.

Nvidia, Meta and other tech firms such as Apple were, however, down in pre-market trading.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said geopolitics was a factor.

“Rising U.S.-Iran tensions are adding a layer of uncertainty, and we’re already seeing that play out in higher oil prices, which are dampening sentiment more broadly.” US mega-cap tech stocks, ​as well as sectors like software and trucking, have had a shaky month as traders have tried ‌to work out which companies are most at risk from A.I.

Chris Turner, global head of markets at lender ING, said investors could take some comfort from Wednesday’s Federal Reserve meeting minutes, which suggested some policymakers were open to rate hikes if inflation remains high.

“The Fed’s talking about a resilient US economy which is good for global growth,” he said. “Equities have been doing quite well in Asia.” GEOPOLITICS AND FED IN FOCUS Oil prices extended gains after surging in the previous session, as investors priced in potential supply ​disruptions on concerns of ‌a conflict between the US and Iran.

US outlets, including the New York Times and CNN, reported the buildup ‌of American forces around Iran, although they stressed President Donald Trump had not decided on a course of action.

Brent crude oil futures were up 1.5% at $71.41 a barrel - around the highest since late January - after jumping 4.4% in the previous session. US crude rose ‌1.6% to $66.26.

“The balance of ‌risks now tilts to a US strike after market close Friday,” said Michael Every, senior global strategist at Rabobank, adding that any attack is likely to ‌last weeks rather than “being over by the Monday open”.

Gold, traditionally a safe-haven asset, rose 0.15% to $4,986 an ounce.

The dollar held on to its gains after rallying in the wake of better-than-expected US economic data and the Fed minutes.

The dollar index, which tracks the currency against six major peers, was last ​up 0.1% at 97.81 after climbing 0.59% on Wednesday.

MSCI’s index of Asian-Pacific stocks excluding Japan rose 0.3% overnight, although trading was thinned by Lunar New Year holidays in some markets.

Oil prices rose on Thursday, driven ‌by increasing concerns over potential military conflict between the United States and Iran as both ​countries stepped up military activity in the oil-producing region.

Brent futures were up $1.09, or 1.55%, ‌at $71.44 a barrel by 1247 GMT ‌while US West Texas Intermediate (WTI) crude also gained $1.09, or 1.7%, to $66.28.

Both benchmarks neared six-month highs on Thursday after advancing more than 4% on Wednesday as traders priced in the risk of supply disruptions in the ‌event of conflict.

The latest rise in oil prices signals a market strengthening an already notable geopolitical risk premium as the world’s most important oil artery again sits within striking distance of conflict, said Saxo Bank analyst Ole Hansen.

About 20% of global oil supply passes through the Strait of Hormuz.

Iranian state media reported that the country shut down the Strait of Hormuz for a few hours on Tuesday without making clear whether the waterway had reopened fully.

Oil prices have further room to rally ​if the perceived likelihood of strikes on Iran intensifies, said Energy Aspects analyst Richard Jones, ‌adding that some traders abandoned expectations of an imminent deal with Iran and were instead pricing in heightened risk of imminent military action.

A degree of progress was made during Iran talks in Geneva this week, but distance remained on some issues, the White House said on Wednesday, adding that it expected Tehran to come back with more details in a couple of weeks.

Iran issued a notice to airmen (NOTAM) that ​it plans rocket launches ‌in areas across the south of the country on Thursday from 0330 GMT to 1330 ‌GMT, according to the US Federal Aviation Administration website.

Agencies