Volkswacht Bodensee - Wall Street wobbles as SpaceX shares launch, oil slides on Mideast deal hopes

SpaceX priced more than 555 million shares at $135 each in a filing with the US markets regulator on Thursday, placing the company in the top 10 of Wall Street's biggest firms with a valuation of just under $1.8 trillion -- ahead of Tesla, Facebook-owner Meta and Walmart.

Briefing.com analyst Patrick O'Hare said before markets opened that the SpaceX shares were expected to soar from the IPO price when they begin trading later in the morning, because the offer was heavily oversubscribed.

"But just how high it goes is the great unknown, along with how the performance of the stock might direct things for the broader market," he said.

The Nasdaq, on which SpaceX shares are listed, dipped at the start of trading, while the Dow and S&P 500 edged higher.

The drop in oil prices to under $90 per barrel also helped boost sentiment in equities markets.

US President Donald Trump claimed on Thursday an agreement to end the Middle East war could be signed in days and cancelled threatened strikes, although Iran's position remained unclear.

Iran's foreign ministry spokesman Esmaeil Baqaei said Tehran "had not reached a final conclusion on the agreement".

The country's state media said that under a draft agreement with the United States, Tehran would not give up control over the strategic Strait of Hormuz.

Europe's main markets gained more than one percent in afternoon trading, following big gains in Asia.

"Investors were in a buoyant mood as hopes of a peace deal between the US and Iran were revived, having seemingly dropped off the table earlier in the week," said Dan Coatsworth, head of markets at AJ Bell.

"Whether momentum can be sustained depends on positive noises about a resolution translating into something more solid in the coming days," he added.

The international benchmark Brent crude was down more than two percent at around $88 a barrel.

"Oil markets may be breathing a little easie, but the path back to smoother flows could take us into the latter part of the year," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

"Even if a deal is reached, getting supply back to normal will not be as simple as flicking a switch, with mines in the Strait of Hormuz to clear, idled production fields to restart and damaged energy infrastructure to repair," he said.

In Asia, Japan's Nikkei closed up almost three percent on Friday, while Seoul's chip-heavy Kospi gave back earlier gains to end the day more than four percent higher.

The Hang Seng and Shanghai also rallied.

- Key figures around 1330 GMT -

Brent North Sea Crude: DOWN 2.4 percent at $88.18 a barrel

West Texas Intermediate: DOWN 2.8 percent at $85.26 a barrel

New York - Dow: UP 0.7 percent at 51,180.18 points

New York - S&P 500: UP 0.2 percent at 7,405.84

New York - Nasdaq Composite: DOWN 0.2 percent at 24,524.64

London - FTSE 100: UP 1.2 percent at 10,426.86

Paris - CAC 40: UP 1.7 percent at 8,339.10

Frankfurt - DAX: UP 1.3 percent at 24,524.64

Tokyo - Nikkei 225: UP 2.8 percent at 66,020.04 (close)

Hong Kong - Hang Seng Index: UP 1.9 percent at 24,718.10 (close)

Shanghai - Composite: UP 1.1 percent at 4,031.51 (close)

Euro/dollar: DOWN at $1.1578 from $1.1579 on Thursday

Pound/dollar: DOWN at $1.3414 from $1.3418

Dollar/yen: UP at 160.21 yen from 159.78 yen

Euro/pound: UP at 86.32 pence from 86.29 pence

L.Maurer--VB