STOCK markets mostly rose yesterday as investors weighed the Israel-Hamas conflict, a raft of corporate results and concerns about interest rates.

Paris and Frankfurt both closed 0.1% higher after slipping earlier in trading, while London finished up 0.6%.

On Wall Street, the Dow Jones Industrial Average and S&P 500 were little-changed at close while the tech-heavy Nasdaq slipped 0.3%.

This came as traders digested stronger than anticipated US retail sales data and company earnings including those of major banks.

Retail sales in the world’s top economy rose 0.7% in September, according to government data, adding to concerns that a further central bank interest rate hike could be on the cards.

Goldman Sachs and Bank of America’s earnings beat expectations, although Goldman reported a profit drop of more than 30% in the third quarter. 

Bank of America figures “appear to point to a slowing US economy, but certainly not one that is showing any significant signs of financial stress,” said Michael Hewson of CMC Markets in a note.

Uncertain backdrop

“All moves of course are unfolding against a tense, and highly uncertain, geopolitical backdrop,” said Patrick O’Hare, analyst at Briefing.com.

All eyes are on US President Joe Biden’s visit to Israel today.

His trip comes as Israeli Prime Minister Benjamin Netanyahu lines up forces on the Gazan border ahead of an expected ground incursion as Tel Aviv retaliates after deadly October 7 attacks by Hamas militants.

Biden was to meet Netanyahu, and will also see Jordanian King Abdullah II, Palestinian leader Mahmud Abbas and Egyptian President Abdel Fattah al-Sisi in hopes of finding a way to de-escalate a crisis that threatens the stability of the region.

Oil prices seesawed, closing slightly higher.

Investors also digested rising US Treasury yields.

The resilient retail sales data fuelled concerns that the US Federal Reserve may have to keep interest rates higher for longer to bring inflation back down to its long-term target of 2%.

“The economy clearly isn’t in –- or even near –- a recession. The market’s worry, though, is that a strong economy could eventually break itself through higher rates,” said Callie Cox, investment analyst at trading platform eToro.

In Britain, official data showed cooler wages growth in the country, increasing expectations that the Bank of England was done with raising interest rates to fight inflation.

Key figures around 2030 GMT

New York - Dow: FLAT at 33,997.65 points (close)

New York - S&P 500: FLAT at 4,373.20 (close)

New York - Nasdaq: DOWN 0.3% at 13,533.75 (close)

London - FTSE 100: UP 0.6% at 7,675.21 (close)

Frankfurt - DAX: UP 0.1% at 15,251.69 (close)

Paris - CAC 40: UP 0.1% at 7,029.70 (close)

EURO STOXX 50: UP less than 0.1% at 4,152.32 (close)

Tokyo - Nikkei 225: UP 1.2% at 32,040.29 (close)

Hong Kong - Hang Seng Index: UP 0.8% at 17,773.34 (close)

Shanghai - Composite: UP 0.3% at 3,083.50 (close)

Euro/dollar: UP at US$1.0579 from US$1.0562 on Monday

Pound/dollar: DOWN at US$1.2182 from US$1.2218

Dollar/yen: UP at  ¥149.82 from  ¥149.53

Euro/pound: UP at 86.81 pence from 86.42 pence

Brent North Sea crude: UP 0.3% at US$89.90 per barrel

West Texas Intermediate: FLAT at US$86.66 per barrel – AFP, October 18, 2023.