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European stock markets turned early gains into losses by early afternoon, following a rally in Asian markets, as investors searched for direction nearly a week after the United States and Israel launched strikes on Iran that sent global markets on a rollercoaster.

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By 2 p.m. CET, Germany’s DAX was down by 0.2%, similar to the CAC 40 in Paris and Britain’s FTSE 100.

Madrid’s IBEX stood out by gaining 0.3% as the European benchmark European Stoxx 600 was down by a few points.

Before noon, European trading followed strong gains in Asia, where South Korea’s Kospi jumped by more than 9%, recovering much of Wednesday’s 12.06% fall.

“A decent showing on Wall Street last night and a solid performance from Asia on Thursday helped to spur part of Europe into a higher gear,” said Dan Coatsworth, head of markets at AJ Bell, commenting on the morning trade.

Uncertainty about the war in the Middle East has continued to rattle financial markets, with investors closely watching movements in the oil price.

Crude prices continued to rise. US benchmark WTI was trading 3% higher at around $76.8 a barrel, while the international benchmark Brent crude was up 2% after 2 pm CET.

“Brent crude continued to move higher, nudging above $83 per barrel and stoking fears that energy bills will go through the roof,” Coatsworth said.

“Oil is so important to the world economy and to see the price rise so quickly in just a week could leave investors feeling dazed and confused.”

He added that the situation in the Middle East was unfolding rapidly, making it difficult for investors to judge whether markets were facing a prolonged energy crisis or “just a short, sharp shock”.

Meanwhile, US futures slipped as Iran launched more missiles at Israel on the sixth day of the conflict.

The latest escalation included Iranian attacks on Israeli and American bases. Iran warned the United States would “bitterly regret” torpedoing an Iranian warship in the Indian Ocean, while a religious leader called for “Trump’s blood”.

Israel said it had begun a “large-scale” attack on Tehran.

On Wednesday, US stocks rose as oil prices steadied, albeit temporarily.

Investor sentiment was also supported by a report showing growth in US businesses in the real estate, finance and other services sectors accelerated last month at the fastest pace since the summer of 2022.

The S&P 500 rose 0.8%, erasing much of its losses since the conflict with Iran began.

The Dow Jones Industrial Average added 0.5%, while the Nasdaq Composite climbed 1.3%.

Another report suggested US private-sector employers increased hiring last month, a potentially positive signal ahead of a broader US government labour market report due on Friday.

Investors remain concerned about how long the conflict could last, how much inflation may rise due to higher oil prices, and what impact that could have on corporate profits.

Gains in major technology companies also lifted Wall Street.

Amazon rose 3.9%, while Nvidia added 1.7%. As two of the largest companies in the US market by value, their movements have a significant impact on the S&P 500.

Wednesday’s strong economic data was also welcome news for the Federal Reserve, which is trying to keep the labour market strong while bringing inflation under control.

However, the jump in oil prices could complicate that task by pushing inflation higher.

In other dealings on Thursday, gold trade was slightly down by early afternoon, losing 0.3% and traded at $5,120 an ounce.

The US dollar traded at 157.64 Japanese yen, while the euro slipped to $1.1623 from $1.1636.

Analysts said the dollar has strengthened partly because the US is seen as facing less direct risk from the conflict than other countries.

Their frustrating midseason slump was finally in the rear-view mirror, their season finally feeling back on the right track.

Any reservations about USC righting the ship after losing six of seven had largely been forgotten on the heels of a four-game winning streak. Victories over No. 8 Iowa, Rutgers, Northwestern and Illinois, two of which came on the road, had cemented its place on the right side of the NCAA tournament bubble.

But as the Trojans were reminded in a 79-73 win over Indiana at Galen Center, now is no time to get comfortable — even if Thursday’s victory had marked their longest winning streak of the season.

The Hoosiers certainly never let USC settle in, even as freshman Jazzy Davidson poured in another stat-stuffing performance that would have to carry a stagnant Trojan offense for much of the way. It would take an aggressive defensive effort, too, complete with 19 forced turnovers, to put Indiana away.

That it took such a hard-fought effort to escape a team that’s 3-11 in the Big Ten and was without the Big Ten’s leading scorer, Shay Ciezki, was not exactly reassuring, as USC (16-9 overall, 8-6 in the Big Ten) enters the final four games of their regular season slate. Two of those four are against top 10 teams, Ohio State and UCLA.

But where the Trojans might have slipped up earlier in the season, they held tight Thursday.

“We were tough where we needed to be when shots weren’t falling,” coach Lindsay Gottlieb said. “Our confidence to get it done when it’s not always prettiest is something that we’re proud of.”

Outside of a stellar second quarter, Thursday’s win certainly would not be remembered for being aesthetically pleasing. Over the rest of the game, Trojans shot under 32% from the floor. Their issues from three-point range persisted, as they made just three of 19 from behind the arc. Over their last four games, they’ve knocked down just 11 of 68 (16%).

They wouldn’t need them Thursday, not with Davidson looking as dynamic as ever. The freshman sensation followed up a career-high, 27-point performance with 24 points, along with six rebounds, three assists and three steals. She did so while playing all 40 minutes.

“You talk about overdelivering,” Gottlieb said, “To be a freshman and carry the load for us and continue to grow, the numbers are really showing it … she’s just capable of doing almost anything on a basketball court.”

That much has been abundantly clear over the last seven games, with Davidson as she’s averaging 20 points, six assists, five rebounds, two steals and two blocks per night. She credited that outburst with being more comfortable down the final stretch of the season.

The Trojans will likely go as far as their dynamic freshman can take them as March approaches. But of late that’s been a pretty successful strategy.

“She’s unique,” Gottlieb said. “I know there are several good freshmen in the country. We know how good she is. We see it every day, and we think there’s no one better.”

USC didn’t look early on like a team that had found solid ground . The Trojans went six straight minutes in the first without a single field goal, then gave up an 8-0 run to Indiana in the final 1:22 of the quarter.

It was until Davidson turned it on in the second quarter that USC seized control. Fresh off her fifth Big Ten Freshman of the Week honors, Davidson tallied 10 points in the second alone, while the Hoosiers had just 13 total, USC’s defense clamping down after a sloppy start.

With Indiana’s attention on Davidson, Kara Dunn and Kennedy Smith would help the Trojans fire out front, as they combined for 20 points after half. But the Hoosiers tied the score just one possession into the fourth quarter.

An elbow to the face of guard Malia Samuels gave the Trojans free throws and a seven-point lead with just four minutes remaining in the game. Still, a foul from Dunn on a corner three-pointer by Indiana’s Maya Makalusky opened the door for the Hoosiers.

Makalusky, who led all scorers with 29, hit another three to once again cut the lead to a single possession.

But USC held on, with Smith applying the punctuation mark, snagging a driving Indiana lay-in out of mid-air with just a minute remaining. It was the sort of play that reminded what USC might be capable of, with everything working in concert.

It’ll need that to be the case, if it hopes to make noise come March.

“We’re in position to do all the things we set out to do,” Gottlieb said. “We’re as good and set up as any team outside of maybe the top group to get a great seed.”