Losses on Wall Street with one eye on the Middle East and the other on the economy

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By TP


Wall Street is trading at a loss this Thursday after Wednesday's slightly positive close, and while the market focuses its attention on Middle East and in new economic data. The falls are led by the Dow Jonesalthough the S&P 500 and the Nasdaq are also trading lower, weighed down by geopolitical tension and despite the increases in chip firms such as Nvidia. The military response that Israel is preparing against Iran has become the main focus of attention. According to 'The New York Times', Netanhyahu's government is considering «attacking Iran directly, in a much more forceful and public way than everand Iran has warned of massive retaliation if it does so.» Israel apparently will not respond until after the 'Rosh Hashanah'the Jewish New Year holiday, which lasts until friday eveningaccording to several sources consulted by the American newspaper. Therefore, the high geopolitical risk premium that is driving the price of oil may continue for the next few days. According to the 'Financial Times', Benjamin Netanyahu's government is studying attack military positions with missile launchers or even oil infrastructurealthough it has ruled out attacking nuclear facilities. In any case, an attack on an oil site «is the increased risk to global oil supply and it is, for me, the only scenario that would justify an increase in crude oil prices 100 dollars per barrel or more,» explains Ipek Ozkardeskaya, an analyst at Swissquote Bank.

ECONOMIC REFERENCES

With regard to economic references, this Thursday the weekly unemployment data in the USwhich have been situated above expectations at 225,0000 requests from 219,000 in the previous seven days, against the backdrop of the Employment Report which will be published this Friday (the consensus expects a unemployment rate stable in the 4.2% and the creation of 140,000 jobs). Furthermore, the data of PMI and ISM of the services sector American September, which represent two thirds of the economy, and which has accelerated its expansion up to maximums of a year and a half.

OTHER MARKETS

In other markets, oil Brent rises 5% ($77.76), due to the current high geopolitical risk premium, the euro depreciates 0.17% ($1.1026) and the ounce of gold rebounds 0.30% ($2,677). Furthermore, the profitability of 10 year American bond rebounds to 3.852%; and the bitcoin earn 0.58% ($60,606).