European markets edge higher amid escalating US-Iran tensions; IQE shares tumble 37% - CNBC

European stocks were slightly higher Friday morning, amid intensifying fears of a military confrontation in the Middle East.

The pan-European Stoxx 600 was up around 0.1% shortly after the opening bell, with most sectors and major bourses in positive territory.

European Markets: FTSE, GDAXI, FCHI, IBEX

Europe's banking index led the gains during early morning deals, up around 0.6%. France's Natixis was the top performer, recovering slightly after heavy losses in the previous session. Fund ratings firm Morningstar put the lender's H20 fund management arm under review on Thursday, prompting shares to fall almost 12%. Analysts told Reuters concerns remained for the bank, but shares rose over 1% on Friday.

Healthcare and technology stocks were the worst performers, with each sector trading more than 0.3% lower during morning trade.

London-listed IQE warned on Friday that revenue would be weaker-than-anticipated for the 2019 financial year. The company, which makes semiconductor wafers for chips used in Apple products among others, issued the revenue warning as U.S. restrictions on Huawei caused more order delays and several of its chip customers slashed forecasts.

Shares of IQE tumbled more than 37% on the news, prompting other European semiconductor stocks to slide. AMS, Siltronic and Infineon were all trading lower Friday morning.

US-Iran tensions

Market focus is largely attuned to simmering geopolitical tensions between the U.S. and Iran. It comes after the New York Times reported late Thursday that President Donald Trump approved military strikes on several Iranian targets, but abruptly pulled back from launching the attacks.

U.S. officials said Thursday that an Iranian missile had shot down an unmanned U.S. surveillance drone over the Strait of Hormuz, a shipping route through which much of the world's oil flows. Iran claimed that the drone was above its territory.

The risk of conflict between Washington and Tehran has been rising since the Trump administration's decision to withdraw from the 2015 Iran nuclear agreement.

Before the confrontation over the American drone, the U.S. accused Iran of recent attacks on oil tankers in the Persian Gulf region.

In oil markets, crude futures rose slightly Friday morning, building on sharp gains in the previous session. International benchmark Brent crude was trading at around $64.56, up around 0.2%, while U.S. West Texas Intermediate (WTI) stood at $57.16, approximately 0.15 higher%.

Oil prices jumped more than 6% in the previous session, amid heightened fears of supply constraints.

Let's block ads! (Why?)

https://www.cnbc.com/2019/06/21/europe-stock-markets-escalating-us-iran-tensions-in-focus.html

2019-06-21 05:55:01Z
CAIiEDfb1BgjacpLUrBltf3CaJoqGQgEKhAIACoHCAow2Nb3CjDivdcCMJ_5ngY

Bagikan Berita Ini