San Francisco Frontiers - Stocks slide as investors worry over Middle East crisis

Wall Street opened higher after falling the previous day, but slid into loss during morning trading, while Europe's main stock markets extended losses following heavy falls earlier in Asia.

Gold continued to be buoyed by investors flocking to the haven investment. Oil prices fell.

"The current risk appetite remains conservative at best, due to the prevailing economic uncertainties and heightened geopolitical risks emitting from the Middle East," said Fawad Razaqzada, analyst at City Index and FOREX.com.

Palestinians in the Gaza Strip have been desperately awaiting the arrival of aid trucks, promised under a deal US President Joe Biden struck with Egypt and Israel.

Biden, on a flying visit to meet Prime Minister Benjamin Netanyahu and his war cabinet on Wednesday, reiterated strong US support for the long-time ally but also stressed the need to address the plight of Palestinian civilians.

Britain's Prime Minister Rishi Sunak on Thursday became the latest foreign leader to make a solidarity visit to Israel.

There are fears of worse to come if Israel launches its anticipated ground invasion aimed at destroying Hamas and rescuing Israeli and foreign hostages.

The conflict -- sparked by the October 7 Hamas attack on Israel that officials said has claimed more than 1,400 lives -- has set off a wave of fury across the Middle East against Israel and its Western allies.

The violence has claimed at least 3,700 lives in Gaza, its Hamas-controlled health ministry said. Entire city blocks have been levelled, water, food and power have been cut off, and over one million people have been forced to flee their homes.

- Interest rate concerns -

The prospect of a wider conflict had pushed up oil prices Wednesday, though Washington's decision to suspend some sanctions on Venezuelan output tempered the gains and both contracts slid two percent on Thursday.

Risk aversion among traders was increased by concerns the Federal Reserve would hike interest rates again, or at least keep them elevated for an extended period.

That has pushed US 10-year Treasury yields -- the interest rate the government pays to borrow -- above 4.9 percent for the first time since 2007, fanning even more unease on trading floors.

"The surge in US 10-year Treasury yields, perhaps a delayed reaction from robust US retail sales data earlier, has taken the forefront in global financial markets," Razaqzada said.

Meanwhile weekly jobless claims data came in lower than expected Thursday, suggesting that the labor market is tighter than many expected.

"The key takeaway from the report is the remarkably low level of initial jobless claims -- a leading indicator -- which conveys a tight labor market that is a good portent for continued strength in consumer spending," Patrick O'Hare from Briefing.com wrote in a note before markets opened.

But such tightness could encourage the US Federal Reserve to raise interest rates again or hold them higher for longer.

Investors were eagerly awaiting a speech by Federal Reserve boss Jerome Powell for more signals about the central bank plans for interest rates, with the dollar slipping against major rivals.

- Netflix jumps, Tesla falls -

Investors are also tracking a wave of corporate earnings.

Shares in Nestle fell after the Swiss food giant reported a drop in sales volume in the first nine months of the year after raising prices in the face of rising inflation.

Nokia was also down after the Finnish telecommunications equipment giant said it would cut up to 14,000 jobs as profits fell on weakening demand for its 5G equipment in North America.

Shares in US streaming giant Netflix soared a day after it reported 11-percent growth in subscribers in the third quarter.

Tesla fell after its third-quarter results missed analyst estimates as the electric car maker was hit by higher costs and the fallout from price discounts.

- Key figures around 1530 GMT -

New York - Dow: DOWN 0.2 percent at 33,615.68 points

London - FTSE 100: DOWN 1.2 percent at 7,499.53 (close)

Frankfurt - DAX: DOWN 0.3 percent at 15,045.23 (close)

Paris - CAC 40: DOWN 0.6 percent at 6,921.37 (close)

EURO STOXX 50: DOWN 0.4 percent at 4,090.33 (close)

Tokyo - Nikkei 225: DOWN 1.9 percent at 31,430.62 (close)

Hong Kong - Hang Seng Index: DOWN 2.5 percent at 17,295.89 (close)

Shanghai - Composite: DOWN 1.7 percent at 3,005.39 (close)

Euro/dollar: UP at $1.0574 from $1.0536 on Wednesday

Pound/dollar: UP at $1.2143 from $1.2140

Dollar/yen: DOWN at 149.90 yen from 149.93 yen

Euro/pound: UP at 87.07 pence from 86.78 pence

Brent North Sea crude: DOWN 0.3 percent at $91.26 per barrel

West Texas Intermediate: DOWN less than 0.1 percent at $88.25 per barrel

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M.Powell--SFF