London (AFP) – European stock markets rose, oil prices dipped, and the dollar steadied Friday as investors awaited a key US jobs report for clues on the outlook for interest rates in the world’s biggest economy. Oil prices have seen volatile movements this week on wavering optimism over whether a deal will be reached to reopen the Strait of Hormuz. London, Paris, and Frankfurt stock markets were all higher around midday, following a mixed session in Asia.
Attention turns to Friday’s release of US jobs data ahead of consumer price figures next week — both of which could be crucial in the Federal Reserve’s decision-making on interest rates. “If we get a stronger than expected payrolls reading and elevated wage pressure, then this could push up expectations for a September rate hike,” said Kathleen Brooks, research director at XTB. She added that it could “reinforce the ‘higher for longer’ narrative on interest rates and break the recent rally in US stocks”.
Stocks enjoyed a healthy run-up at the start of the week on well-received company earnings and as US President Donald Trump called off strikes on Iran, saying an agreement was close, even though Tehran denied talks took place. At the same time, Iran said it was close to a pact with Oman on managing the Strait of Hormuz, which has been choked off for most of the Middle East war, but that the United States would need to end its own naval blockade of Iranian ports.
Oil prices eased Friday after rising on reports that the potential agreement bars US and Israeli vessels from entering the Strait. That dampened hopes for a full reopening of the waterway — through which about a fifth of global oil passes — and revived fears of a new spike in inflation that could lead to higher interest rates.
Equity markets in Asia diverged at the end of the week, with Seoul again hit by concerns over the AI boom, while Tokyo, Taipei, Bangkok, and Mumbai were also lower. Hong Kong, Shanghai, Singapore, and Jakarta advanced. Official data Friday showed that Chinese exports and imports soared in July, as the manufacturing powerhouse benefits from a global AI boom lifting overseas demand for tech products.
There was a pullback Thursday on Wall Street, where the Dow came off three days of record highs.
– Key figures around 1100 GMT –
London – FTSE 100: UP 0.7 percent at 10,947.40 points
Paris – CAC 40: UP 0.5 percent at 8,741.22
Frankfurt – DAX: UP 0.8 percent at 26,360.31
Tokyo – Nikkei 225: DOWN 0.1 percent at 65,606.71 (close)
Hong Kong – Hang Seng Index: UP 0.5 percent at 25,668.03 (close)
Shanghai – Composite: UP 1.0 percent at 3,940.04 (close)
New York – DOW: DOWN 0.9 percent at 53,885.10 (close)
Euro/dollar: UP at $1.1528 from $1.1524 on Thursday
Pound/dollar: DOWN at $1.3437 from $1.3456
Dollar/yen: DOWN at 158.32 yen from 158.40 yen
Euro/pound: UP at 85.79 pence at 85.65 pence
Brent North Sea Crude: DOWN 0.8 percent at $81.87 per barrel
West Texas Intermediate: DOWN 0.5 percent at $76.92 per barrel
© 2024 AFP
