US open: Markets open lower as geopolitical tension rises in Syria
US markets opened lower on Tuesday, amid disappointing data from European and Asian markets and news of a US operation against Islamic State (ISIS) militants in Syria.
AbbVie Inc
$161.34
04:50 08/05/24
Apple Inc.
$182.24
04:50 08/05/24
AstraZeneca
12,288.00p
14:50 08/05/24
CF Industries Holdings Inc.
$73.93
04:50 08/05/24
FTSE 100
8,350.27
14:50 08/05/24
The Chinese HSBC manufacturing purchasing managers’ index (PMI) delivered strong figures overnight rising from 50.2 to 50.5, while the Eurozone PMI once again came in weaker with the only main boost coming in the form of the French manufacturing sector, which managed to rise from 46.9 to 48.8.
The US was joined by its “coalition partners”, Bahrain, Saudi Arabia, Jordan and the United Arab Emirates in an attack against ISIS in Syria, the first attack conducted alongside Middle Eastern countries.
The markets responded almost immediately to the US intervention in Syria, as the 10-year Treasury note rose 0.02 to 2.546%, while the five-year note yield dropped 1.5 basis points to 1.769% and the 30-year bond yield fell 0.02% to 3.270%.
“The escalation of the conflict will of course raise questions over the risk appetite of many within the markets, who are no doubt worried about a major war which appears to be unfolding,” said Joshua Mahony, research analyst at Alpari UK.
Shares of Abbvie declined in early trading following news that the Treasury Department decided to implement new measures aimed at curbing tax benefits to corporations that move their headquarters abroad.
As a result, Abbvie, which agreed to buy Dublin-based Shire in July, saw its share price drop almost 5%, a similar fate to that suffered by Astrazeneca, which also fell.
CF Industries rose slightly after news emerged that the fertilizer producer was in talks with Norway-based chemical firm Yara International over a possible takeover.
Apple registered a marginal fall after it denied a report from Techcrunch that it planned to close Beats Music, the streaming service it recently purchased, while Herbalife shares were on an upward curve in early trading following a 10% drop on Monday to their lowest level in 17 months.
Despite the disappointing data from the Eurozone, the dollar was in retreat against the euro and it also lost ground against the pound and the yen, while the price of gold rose 0.8% to $1,227.50 an ounce and West Texas intermediate crude fell three basis points to $90.8.