New York (AFP) – Stock markets fluctuated on Wednesday, with many investors sticking to the sidelines while looking for clues on US interest rate moves. Trading volumes were light overall, with another pullback in US tech heavyweights spurring caution after their stellar run since April. Tuesday’s tech sell-off, which extended into Wednesday, was “sparked by concerns about overexcitement and overvaluations in AI stocks,” said Victoria Scholar, head of investment at Interactive Investor.
Wall Street closed mostly lower, with the tech-heavy Nasdaq falling again as shares in AI chip-maker Nvidia ticked down. Its rival Advanced Micro Devices and software provider Palantir also pulled back on Wednesday. Paris and Frankfurt fell, with European defense stocks adding to losses on signs that a path may be clearing for Ukraine peace talks.
London’s FTSE 100 index rose, but the pound fell back from earlier highs after UK inflation rose more than expected in July, dampening hopes that the Bank of England will cut rates again this year. Minutes of the US Federal Reserve’s recent policy meeting in July showed that a majority of officials judged that inflation risks outweighed those of employment for now — as policymakers voted to keep interest rates unchanged despite two dissents.
All eyes are now on Fed Chair Jerome Powell, who has resisted US President Donald Trump’s vociferous calls for rate cuts and is set to deliver remarks Friday at the annual central bankers conference in Jackson Hole, Wyoming. Data last week provided a mixed picture of US inflation, making it uncertain if the Fed will lower rates as many investors expect in September — which could bolster growth in the world’s largest economy.
Traders have also been watching the recent diplomatic whirlwind aimed at resolving the war in Ukraine, after Trump’s high-stakes meeting with Russian counterpart Vladimir Putin in Alaska. It has been more than three years since Moscow’s invasion. Investors are monitoring the possibility of face-to-face talks between Putin and Ukrainian President Volodymyr Zelensky, who has said he is ready for such a meeting.
Oil prices rose, recovering part of the losses from the previous day, as investors monitored progress on Ukraine peace talks. In Asia, Tokyo closed down 1.5 percent after official data showed Japanese exports suffered their steepest drop in more than four years last month as US tariffs weighed. Hong Kong advanced while Shanghai closed up one percent. Hong Kong’s stock exchange operator posted record half-year revenue, riding a renewed surge in listings and trading activity at the Chinese finance hub.
In company news, shares in mining giant Anglo American fell 0.9 percent in London after US group Peabody Energy walked away from a $3.8 billion deal to buy its steelmaking coal business.
– Key figures at around 2025 GMT –
New York – Dow: FLAT at 44,938.31 points (close)
New York – S&P 500: DOWN 0.2 percent at 6,395.78 (close)
New York – Nasdaq: DOWN 0.7 percent at 21,172.85 (close)
London – FTSE 100: UP 1.1 percent at 9,288.14 (close)
Paris – CAC 40: DOWN 0.1 percent at 7,973.03 (close)
Frankfurt – DAX: DOWN 0.6 percent at 24,276.97 (close)
Tokyo – Nikkei 225: DOWN 1.5 percent at 42,888.55 (close)
Hong Kong – Hang Seng Index: UP 0.2 percent at 25,165.94 (close)
Shanghai – Composite: UP 1.0 percent at 3,766.21 (close)
Euro/dollar: UP at $1.1648 from $1.1646 on Tuesday
Pound/dollar: DOWN at $1.3452 from $1.3489
Dollar/yen: DOWN at 147.44 yen from 147.64 yen
Euro/pound: UP at 86.59 pence from 86.33 pence
West Texas Intermediate: UP 1.4 percent at $63.21 per barrel
Brent North Sea Crude: UP 1.6 percent at $66.84 per barrel
© 2024 AFP
