London (AFP) – Stock markets were mostly higher Wednesday on signs that talks were continuing to end the war in the Middle East, bolstering hopes that Gulf oil and gas could again be flowing soon through the Strait of Hormuz. Wall Street indexes opened higher, adding to a string of gains that have pushed the S&P 500 back to levels seen before February 28, when the US and Israel launched attacks on Iran that roiled financial markets. European markets were mostly little changed, holding on to the recent days’ gains.
The dollar has also fallen back to pre-war levels, handing back the gains it saw as investors flocked to the safe-haven asset, while oil prices were flat after falling sharply on Tuesday. Even though the US Navy has imposed a blockade on Iranian ports, President Donald Trump said Tuesday that talks with Tehran could resume this week. “While I think a degree of caution is still warranted, markets are quite optimistic, judging by the big risk rally we have seen this week,” said Fawad Razaqzada, an analyst at FOREX.com.
A string of solid first-quarter earnings from blue-chip companies has also bolstered sentiment that the Middle East war will not derail profits or spending plans that have fueled equity gains in recent months. But disappointing sales from French luxury heavyweights Kering and Hermes weighed on the Paris stock market, with both companies citing the impact of fighting in the Gulf. Kering’s first-quarter revenues were down three percent at comparable currency rates, dragged down again by its flagship Gucci brand. Its share price slumped more than 10 percent. Hermes shed almost nine percent after the high-end handbag maker reported sales down 1.4 percent, as a stronger euro made its items more expensive for buyers abroad.
– Key figures at 1350 GMT –
Brent North Sea Crude: FLAT at $94.76 a barrel
West Texas Intermediate: DOWN 0.2 percent at $91.07 a barrel
New York – Dow Jones: DOWN 0.1 percent at 48,469.25 points
New York – S&P 500: UP 0.1 percent at 6,972.39
New York – Nasdaq: UP 0.3 percent at 23,713.17
London – FTSE 100: DOWN 0.1 percent at 10,594.17
Paris – CAC 40: DOWN 0.6 percent at 8,274.23
Frankfurt – DAX: UP 0.2 percent at 24,083.29
Tokyo – Nikkei 225: UP 0.4 percent at 58,134.24 (close)
Hong Kong – Hang Seng Index: UP 0.3 percent at 25,947.32 (close)
Shanghai – Composite: FLAT at 4,027.21 (close)
Euro/dollar: DOWN at $1.1787 from $1.1797 on Tuesday
Pound/dollar: DOWN at $1.3556 from $1.3564
Dollar/yen: UP at 159.07 yen from 158.84 yen
Euro/pound: FLAT at 86.95 pence
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© 2024 AFP
