New York (AFP) – Global stocks were subdued and precious metals hit new highs Friday as US President Donald Trump followed up conciliatory comments on Greenland with a fresh warning on Iran. Trump, who on Wednesday backed away from threatened tariffs on Europe over Greenland, told reporters the United States was sending a “massive fleet” toward Iran “just in case.” Gold — a safe-haven asset — pushed closer to a record $5,000 an ounce, while fellow safe haven silver also kept rising, blasting through $102 an ounce amid worries over what Trump may say next, or actually do. The dollar retreated, falling to a four-month low against the euro.
Sentiment had calmed over the past two days after the US president pulled back from his threat to hit several European nations with levies because of their opposition to Washington taking over the Danish autonomous territory of Greenland. Trump has repeatedly left open the option of new military action against Iran after Washington backed and joined Israel’s 12-day war in June aimed at degrading Iran’s nuclear and ballistic missile programs. The prospect of immediate American action seemed to recede in recent days, with both sides insisting on giving diplomacy a chance.
European markets sought direction in vain, with Frankfurt closing just in the green as London and Paris fell on the red side of the line at the end of the week. Wall Street painted a similar picture, with the Dow retreating while the Nasdaq pushed higher. Intel plunged 17 percent after lackluster expectations on the chip maker’s earnings. Asian markets closed higher.
– Powell under pressure –
Trump’s latest salvo against allies revived trade war fears and uncertainty about US investment, putting downward pressure on the dollar this week. Analysts said there was no guarantee that Europe-US relations had improved durably. The US president’s willingness to threaten tariffs over any issue had rattled confidence on trading floors, boosting safe-haven metals, analysts said.
Investors were also preparing for next week’s Federal Reserve meeting following economic data broadly in line with forecasts and after US prosecutors took aim at boss Jerome Powell, which has raised fears over the bank’s independence. The bank is tipped to hold interest rates steady, after cutting them in the previous three meetings. The meeting also comes as Trump considers candidates to replace Powell when the Fed chair’s term comes to an end in May. The Bank of Japan left its key interest rate unchanged ahead of a snap election next week, which could impact government spending plans. After sharp volatility in the wake of the announcement, the yen traded slightly higher.
Next week’s US earnings calendar is packed with results from Apple, Microsoft, Boeing, Tesla, Meta, and other corporate giants.
– Key figures at around 2120 GMT –
New York – Dow: DOWN 0.6 percent at 49,098.71 (close)
New York – S&P 500: FLAT at 6,915.61 (close)
New York – NASDAQ: UP 0.3 percent at 23,501.24 (close)
London – FTSE 100: DOWN 0.1 percent at 10,143.44 (close)
Paris – CAC 40: DOWN 0.1 percent at 8,143.05 (close)
Frankfurt – DAX: UP 0.2 percent at 24,900.71 (close)
Tokyo – Nikkei 225: UP 0.3 percent at 53,846.87 (close)
Hong Kong – Hang Seng Index: UP 0.5 percent at 26,749.51 (close)
Shanghai – Composite: UP 0.3 percent at 4,136.16 (close)
Euro/dollar: UP at $1.1823 from $1.1755 on Thursday
Pound/dollar: UP at $1.3636 from $1.3501
Dollar/yen: DOWN at 157.00 yen from 158.41 yen
Euro/pound: DOWN at 86.70 pence from 87.07 pence
West Texas Intermediate: UP 2.9 percent at $61.07 per barrel
Brent North Sea Crude: UP 2.8 percent at $65.88 per barrel
© 2024 AFP
