London (AFP) – Stock markets were little changed Monday, holding near record highs amid thin summer volumes. Investors awaited inflation data this week for more clues to the interest-rate outlook for the US economy, while oil prices rose. Oil jumped as Iran issued a series of demands over reopening the Strait of Hormuz to Gulf tanker and cargo traffic.
In Europe, Paris and Frankfurt closed up marginally, while London slipped at the end of the session. In midday trading on Wall Street, the blue-chip Dow and the wider S&P were basically unchanged, while the tech-heavy Nasdaq was slightly lower. US stocks rose Friday after data surprisingly showed that 23,000 jobs were lost last month, confounding widespread expectations for growth and suggesting that the US Federal Reserve would hold off on raising borrowing costs to contain stubbornly high inflation.
“Several Fed speakers took a hawkish tone last week, some saying it would be better to begin hiking early than to take more dramatic action later,” said Charles Schwab strategist Joe Mazzola. “However, those comments came when jobs growth appeared moderately higher. Now it’s conceivably a different picture with monthly jobs growth averaging a dismal 34,000 over the last year,” he added.
The AI sector that has recently underpinned the US stock market is increasingly reliant on debt to fund its massive investments and would be penalized by higher interest rates, said Ipek Ozkardeskaya, senior analyst at Swissquote. The focus now turns to US consumer inflation data due Wednesday, followed by producer prices later in the week.
Earlier in Asia, equities were boosted by technology shares following a volatile run in recent weeks, with Japanese and Korean chipmakers leading the charge. Tokyo climbed more than two percent thanks to advances for Tokyo Electron and Advantest, and Seoul, Hong Kong, Shanghai, and Mumbai also closed higher.
On currency markets, the dollar clawed back some of the losses seen Friday in reaction to the US jobs figures. The greenback plunged against the yen earlier this month when the US and Japanese monetary authorities jointly intervened in the market to support the Japanese currency, saying its value had fallen too far.
Crude prices extended gains after Iran’s Revolutionary Guards warned Sunday that they would not reopen the Strait of Hormuz until Washington complied with demands, including compensation for war damage. “The Iran conflict remains a key source of concern for markets, with a lasting resolution seeming a distant prospect at this point,” said AJ Bell investment director Russ Mould. Tehran insists on retaining control of the waterway through which about one-fifth of the world’s oil and liquefied natural gas passes, and it wants to charge tolls for passage, a demand rejected by US officials.
– Key figures around 1540 GMT –
New York – DOW: DOWN less than 0.1 percent at 54,002.66 points
New York – S&P 500: DOWN less than 0.1 percent at 7,756.82
New York – Nasdaq Composite: DOWN 0.3 percent at 26,607.73
London – FTSE 100: DOWN 0.4 percent at 10,862.50 (close)
Paris – CAC 40: UP 0.1 percent at 8,726.03 (close)
Frankfurt – DAX: UP less than 0.1 percent at 26,323.88 (close)
Tokyo – Nikkei 225: UP 2.1 percent at 66,970.22 (close)
Hong Kong – Hang Seng Index: UP 1.1 percent at 25,937.49 (close)
Shanghai – Composite: UP 0.7 percent at 3,966.59 (close)
Euro/dollar: DOWN at $1.1549 from $1.1567 on Friday
Pound/dollar: UP at $1.3522 from $1.3499
Dollar/yen: UP at 158.93 yen from 157.50 yen
Euro/pound: DOWN at 85.43 pence from 85.68 pence
Brent North Sea Crude: UP 3.5 percent at $86.41 per barrel
West Texas Intermediate: UP 3.4 percent at $80.90 per barrel
© 2024 AFP
