London (AFP) – Stock markets climbed but then stalled Wednesday as investors digested a wave of company earnings that broadly surpassed expectations, while assessing the chances of a US-Iran deal to reopen the Strait of Hormuz. After pushing strongly ahead in early trading on Wall Street, the Dow saw an initial 1.2 percent gain trimmed to 0.8 percent two hours in, while the broader-based S&P 500 was up just 0.1 percent. The tech-heavy NASDAQ Composite was down 0.1 percent at 26,566.93 points, as Elon Musk’s SpaceX slid almost nine percent.
Musk’s rocket and satellite company fell after posting its first quarterly earnings report, amid questions on what returns huge investments in artificial intelligence will ultimately produce. While revenues jumped 92 percent, investors focused on the more than $18 billion in SpaceX spending during the quarter. Advanced Micro Devices (AMD), the processor and graphics solutions giant, slipped around six percent, despite beating analysts’ estimates.
In Europe, London ended with just a 0.1 percent rise, Paris was flat following a Tuesday record high, while Frankfurt lost 0.3 percent at the close. Frankfurt and Paris had joined Madrid and Milan in hitting fresh highs earlier in the session. As traders continued to weigh the ongoing uncertainty in the Middle East and the fallout emanating from it, Iran and Oman said they had agreed on a route for ships transiting the Strait of Hormuz and were putting the final touches on arrangements for managing the passage together.
Oil prices promptly edged down after earlier moving slightly higher when Yemen’s Iran-backed Houthis stated they had attacked a Saudi oil tanker in the Red Sea. Brent crude and US benchmark WTI both dropped around half of one percent as Brent dipped under the $80 mark. For Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG, the market is taking heart from hopes of a deal to reopen the strait.
“Whatever the damage to the US’ standing internationally, markets only care for now about the beneficial effect of lower oil prices, which are likely to help cool inflation and ease back the chances of Fed hikes in 2026,” said Beauchamp. Investors are also keeping tabs on this week’s release of US jobs data. That should provide a fresh idea about the state of the economy and guide the Federal Reserve as it considers its next move on interest rates.
Asian equities benefited from a recent revival in technology stocks after a month-long rout, tracking gains on Wall Street Tuesday that sent both the Dow and the S&P 500 to new records. Seoul, which has been at the forefront of extreme volatility in the tech sector over the past month, added 3.8 percent, while Tokyo ended up more than three percent, and Hong Kong and Shanghai also saw gains.
– Key figures around 1550 GMT –
New York – DOW: UP 0.8 percent at 54,540.47 points
New York – S&P 500: UP 0.1 percent at 7,746.78
New York – NASDAQ Composite: DOWN 0.1 percent at 26,566.93
London – FTSE 100: UP 0.1 percent at 10,888.30 (close)
Paris – CAC 40: FLAT 8,669.30 (close)
Frankfurt – DAX: DOWN 0.3 percent at 26,126.30 (close)
Tokyo – Nikkei 225: UP 3.7 percent at 66,300.44 (close)
Hong Kong – Hang Seng Index: UP 0.2 percent at 25,915.82 (close)
Shanghai – Composite: UP 1.5 percent at 3,878.43 (close)
Seoul – Kospi: UP 3.8 percent at 6,598.26 (close)
Dollar/yen: DOWN at 157.64 yen from 157.72 yen on Tuesday
Euro/dollar: UP at $1.1544 from $1.1533
Pound/dollar: UP at $1.3458 from $1.3453
Euro/pound: DOWN at 85.78 pence from 85.73 pence
Brent North Sea Crude: DOWN 0.4 percent at $79.02 per barrel
West Texas Intermediate: DOWN 0.8 percent at $75.16 per barrel
© 2024 AFP
