New York (AFP) – European stock markets rose while Wall Street mostly retreated Tuesday as investors warily eyed signs of progress in talks to end Russia’s war in Ukraine. Markets were also waiting for a key speech by the US Federal Reserve chief this week for clues on interest rate cuts that could bolster the world’s biggest economy.
Hopes for a Ukraine breakthrough rose after US President Donald Trump said he spoke by phone with Russian counterpart Vladimir Putin, following a meeting with Ukrainian President Volodymyr Zelensky and European leaders at the White House. Zelensky said he was ready for what would be his first face-to-face talks with Putin since Russia’s invasion nearly three and a half years ago.
Wall Street mostly pulled back, with the Nasdaq tumbling 1.5 percent and the S&P 500 losing 0.6 percent. The Dow closed flat. London, Paris, and Frankfurt stocks all closed higher following a lackluster session for Asian stock markets. Defense stocks fell sharply as chances grew for a breakthrough in Ukraine peace talks, with Germany’s Rheinmetall dropping 4.7 percent and France’s Thales down 4.1 percent.
Investors were also eagerly awaiting a speech on Friday by Fed Chair Jerome Powell at the annual retreat of global central bankers in Jackson Hole, Wyoming. Traders hope Powell will provide more clues about a widely expected interest rate cut at the Fed’s next policy meeting in September, after data last week provided a mixed picture about inflation.
“Markets seem to be exercising some caution ahead of the Jackson Hole meeting later this week and as talks over a peace agreement between Russia and Ukraine remain inconclusive,” said AJ Bell’s head of financial analysis Danni Hewson. Oil prices, which have been volatile for several days—Russia is a major crude producer—retreated after gains on Monday. “Oil prices have dropped a little as a deal edges closer, given that it’s likely to lead to an easing of sanctions on Russia energy imports, increasing supplies on global markets,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Japan’s Nikkei briefly hit a record before retreating to close down 0.4 percent. Shanghai ended flat while Hong Kong, Sydney, and Seoul fell, and Singapore, Bangkok, and Mumbai edged up. Among individual companies, Intel shares advanced around 7.0 percent in New York after Japan-based tech investment giant SoftBank said it would invest $2 billion in the troubled US chip giant. White House Press Secretary Karoline Leavitt confirmed Tuesday that the US Commerce Department was “ironing out the details” on a deal with the company, as the government seeks a stake in Intel in exchange for grants.
– Key figures at around 2155 GMT –
New York – Dow: FLAT at 44,922.27 points (close)
New York – S&P 500: DOWN 0.6 percent at 6,411.37 (close)
New York – Nasdaq: DOWN 1.5 percent at 21,314.95 (close)
London – FTSE 100: UP 0.3 percent at 9,189.22 (close)
Paris – CAC 40: UP 1.2 percent at 7,979.08 (close)
Frankfurt – DAX: UP 0.5 percent at 24,423.07 (close)
Tokyo – Nikkei 225: DOWN 0.4 percent at 43,546.29 (close)
Hong Kong – Hang Seng Index: DOWN 0.2 percent at 25,122.90 (close)
Shanghai – Composite: FLAT at 3,727.29 (close)
Euro/dollar: DOWN at $1.1646 from $1.1666 on Monday
Pound/dollar: DOWN at $1.3489 from $1.3503
Dollar/yen: DOWN at 147.64 yen from 147.89 yen
Euro/pound: DOWN at 86.33 pence from 86.40 pence
West Texas Intermediate: DOWN 1.7 percent at $62.35 per barrel
Brent North Sea Crude: DOWN 1.2 percent at $65.79 per barrel
© 2024 AFP
