Dubai Telegraph - Oil drops, stocks mixed on Mideast war, AI uncertainty

Iran reported "no tangible progress" in negotiations on ending the war, even as the US House of Representatives passed a resolution seeking to halt American military action in Iran.

Israel meanwhile struck south Lebanon and threatened new attacks on Beirut despite an announcement hours earlier that the opposing sides had agreed to implement a conditional ceasefire.

Elsewhere, a disappointing forecast by chip giant Broadcom stoked concerns about AI stock valuations, which have soared in recent months and helped push equity indexes to record highs.

Broadcom's stock plunged 13 percent in after-market trading on Wednesday, "reviving doubts the actual growth rates for artificial intelligence", said John Plassard at Cite Gestion.

Investors also braced for a coming IPO by Elon Musk's SpaceX, the rockets-to-AI behemoth that is aiming to raise $75 billion in the biggest initial share sale ever.

SpaceX said in a regulatory filing that it would offer over 550 million shares at $135 each next week, which could value the company at a whopping $1.8 trillion.

"Market sentiment is coming under pressure following yesterday's pullback in US equities and the precarious nature of negotiations between the US and Iran to reopen the Strait of Hormuz," said Neil Wilson, investor strategist at Saxo UK.

Despite rising energy prices, US data showed the country's companies added the most jobs in May since the start of 2025.

That came before the release of the closely watched nonfarm payrolls report Friday for the world's biggest economy.

The dollar dropped against main rivals after recent gains thanks to its safe-haven status and expectations that the Fed could raise US interest rates to combat higher inflation.

However, the greenback still managed to push Indonesia's rupiah to a record low against the currency, with the Asian country stung by surging energy costs and as its lawmakers passed a bill expanding oversight of the central bank that raised concerns over its independence.

- Key figures at around 1130 GMT -

Brent North Sea Crude: DOWN 1.4 percent at $96.46 a barrel

West Texas Intermediate: DOWN 1.1 percent at $94.98 a barrel

London - FTSE 100: DOWN 0.9 percent at 10,242.18 points

Paris - CAC 40: UP 0.6 percent at 8,200.79

Frankfurt - DAX: UP 0.4 percent at 24,902.98

Tokyo - Nikkei 225: DOWN 1.4 percent at 67,470.69 (close)

Hong Kong - Hang Seng Index: DOWN 1.5 percent at 25,253.40 (close)

Shanghai - Composite: DOWN 0.6 percent at 4,057.78 (close)

New York - DOW: DOWN 1.2 percent at 50,687.07 (close)

Euro/dollar: UP at $1.1630 from $1.1599 on Wednesday

Pound/dollar: UP at $1.3448 from $1.3420

Dollar/yen: DOWN at 159.85 yen from 160.07 yen

Euro/pound: UP at 86.49 pence from 86.43 pence

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F.A.Dsouza--DT