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Tanker attacks send oil higher, stocks hit by AI jitters
🇸🇬 Singapore /Economy & Trade

Tanker attacks send oil higher, stocks hit by AI jitters

From CNA · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Crude oil prices surged over two percent following renewed attacks on commercial shipping in the Strait of Hormuz, reviving fears about global energy supplies.
  • Stock markets declined as jitters about the artificial intelligence sector impacted investor sentiment.
  • Samsung's shares tumbled despite a massive profit jump, as investors worried the AI-fueled rally might be ending.

Oil prices climbed more than two percent as recent attacks on commercial shipping revived concerns over global energy supplies. The assaults occurred in the Strait of Hormuz, a critical route for global energy transport, despite a ceasefire between the United States and Iran.

Crude oil rose by more than two per cent after renewed attacks on commercial shipping in the Strait of Hormuz reignited concerns over global energy supplies and cast doubt on the durability of the US-Iran agreement.

— Axel RudolphChief technical analyst at IG, explaining the rise in oil prices.

"Crude oil rose by more than two per cent after renewed attacks on commercial shipping in the Strait of Hormuz reignited concerns over global energy supplies and cast doubt on the durability of the US-Iran agreement," said Axel Rudolph, chief technical analyst at IG. The attacks targeted three tankers in the past 24 hours, according to the UK Maritime Trade Operations agency.

The ugly reaction to exceptional Samsung earning is a reminder that, in richly valued markets, meeting expectations is no longer enough.

— Ipek OzkardeskayaSenior analyst at Swissquote bank, commenting on market reactions to Samsung's earnings.

Meanwhile, stock markets experienced a downturn, particularly in the technology sector, driven by anxieties surrounding the artificial intelligence industry. The tech-heavy Nasdaq Composite in New York fell over one percent, and the Dow closed 0.3 percent lower. European markets in Frankfurt and Paris also ended in the red.

There's nothing overly concerning about the trajectory of AI but there is a lot of spending even from Samsung's perspective that potentially introduces some risks.

— Angelo KourkafasEdward Jones, warning about potential risks in AI spending.

Seoul led losses in Asian stocks, with Samsung's share price dropping significantly. This occurred despite the South Korean chip giant reporting an expected jump of over 1,800 percent in second-quarter operating profit, driven by strong demand for AI-essential memory chips. Investors are concerned that the record-breaking AI rally may have peaked. "The ugly reaction to exceptional Samsung earning is a reminder that, in richly valued markets, meeting expectations is no longer enough," noted Ipek Ozkardeskaya, senior analyst at Swissquote bank.

For AI-linked stocks, the market now wants strong earnings, strong guidance and clear evidence that pricing power can last.

— Charu ChananaSaxo Markets, outlining market expectations for AI stocks.
DistantNews Editorial

Originally published by CNA. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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