Several companies suspended shipping through the Red Sea after Yemen’s Iran-backed Huthi rebels attacked vessels. The rebels claimed to have targeted two “Israeli-linked” ships as part of a series of drone and missile strikes in the Red Sea, aimed at pressuring Israel regarding its conflict with Hamas in the Gaza Strip.
Five major shipping firms, including BP and Taiwan’s Evergreen, announced the rerouting of their vessels away from the Red Sea. The Suez Canal, a crucial transit route for cargo and oil, necessitates ships to travel through the Red Sea.
Investors were also focused on the Bank of Japan’s meeting, although expectations of a shift in interest rates policy have diminished. The Federal Reserve’s indication of a loosening monetary policy, coupled with decreasing inflation and a stable economy, contributed to record highs in the Dow and Nasdaq on Wall Street. Despite a slight slowdown in the buying frenzy on Friday, equity indices, including the Paris CAC 40 and Frankfurt’s DAX, reached all-time peaks.
As for central bank decisions, some Fed officials tempered expectations of significant rate cuts next year. The Bank of Japan’s decision is anticipated on Tuesday, with analysts not expecting an immediate shift away from their ultra-loose policy. While keeping rates in negative territory, the bank has maintained control over bond prices to stimulate the economy. Rising inflation and the struggling yen are factors prompting speculation of a policy shift, although the bank may take its time.
Key figures around 1330 GMT:
- West Texas Intermediate: Up 2.8 percent at $73.42 per barrel
- Brent North Sea crude: Up 2.9 percent at $78.73 per barrel
- New York – Dow: Up less than 0.1 percent at 37,337.65 points
- London – FTSE 100: Up 0.6 percent at 7,622.81
- Paris – CAC 40: Down 0.4 percent at 7,569.70
- Frankfurt – DAX: Down 0.5 percent at 16,671.57
- EURO STOXX 50: Down 0.5 percent at 4,516.07
- Tokyo – Nikkei 225: Down 0.6 percent at 32,758.98 (close)
- Hong Kong – Hang Seng Index: Down 1.0 percent at 16,629.23 (close)
- Shanghai – Composite: Down 0.4 percent at 2,930.80 (close)
- Dollar/yen: Up at 142.88 yen from 142.22 yen on Friday
- Euro/dollar: Up at $1.0929 from $1.0897
- Pound/dollar: Down at $1.2664 from $1.2677
- Euro/pound: Up at 86.31 pence from 85.94 pence