Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Europe open: Stocks mixed as Israel conflict drives risk-off trading
(Sharecast News) - European stocks opened mixed on Wednesday as markets struggled for direction in the wake of yet another rise in bond yields and ongoing conflict in Israel. The Europe Stoxx 600 index was down 0.2% early on, with stocks in London falling 0.2%, Madrid down 0.1%, Paris flat, Frankfurt up 0.1% and Milan 0.2% higher.
Government bonds continue to be sold off with the 10-year US Treasury note yield rising a further 1.3 basis points (bp) to 4.847% early on, closing in on another 16-year high. The yield on a 10-year Germany Bund was up 2.7bp at 2.908% as it nears its multi-year high of 3.027% reached earlier this month - its highest since 2011.
Meanwhile, gold prices have rallied to a one-month high as investors seek safe havens amid an escalation of violence in Gaza after a hospital strike killed scores of people on Monday afternoon. Gold futures for December delivery were up 0.8% at $1,951 an ounce.
Victoria Scholar, head of investment at Interactive Investor, said the Israel-Hamas conflict is "spark[ing] nervousness among investors, boosting global appetite for safety assets like precious metals".
US president Joe Biden has touched down in Israel on the back of shuttle diplomatic efforts to de-escalate the crisis.
"The explosion at a hospital in Gaza has quietly influenced the financial markets' reaction to the Israel-Hamas conflict," said Stephen Innes, managing partner at SPI Asset Management.
"Initially, markets appeared to downplay the risk of a broader conflict. However, following the explosion, several key political leaders, including the Palestinian, Egyptian, and Jordanian leaders, cancelled meetings with US President Biden. While safe-haven flows still appear to be relatively subdued, the price of gold has tested the top of the recent range and oil prices initially inched higher. But for stock investors the optics are not great."
In economic data news on Wednesday, UK inflation held steady at 6.7% in September, despite expectations for a slight fall to 6.5%. Eurozone inflation stats are due out later this morning, while building permits and housing starts will be released in the US this afternoon.
In company news, Adidas shares were rising strongly after the sporting goods giant pointed to a full-year adjusted operating profit of €100m, compared with previous guidance of breakeven.
UK hospitality group Whitbread rose strongly in London after giving a confident outlook as it unveiled a £300m share buyback programme.
Also in London, housebuilder Barratt Developments reported a much slower start to the financial year with net private reservations falling 10% as a result of ongoing challenges prospective buyers are finding in securing mortgages. Secotr peers Taylor Wimpey and Berkeley also fell.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.