World markets showed mixed results on Friday, while U.S. futures fell due to uncertainty around the U.S.-Iran deal. Planned talks between the U.S. and Iran about ending their conflict were postponed. This led to caution in the markets. Simultaneously, Israel’s military reported strikes in southern Lebanon, where fighting had intensified with Hezbollah.
Both sides are trying to show some good faith,
noted Bas van Geffen from RaboResearch. He also mentioned that despite calmer waters, the agreement is fragile on multiple fronts.
Europe’s major indexes showed varied performance. Germany’s DAX increased by 0.2% to 25,079.30, while France’s CAC 40 remained mostly stable at 8,467.75. The UK’s FTSE 100 declined by 0.2%, ending at 10,376.64. In the U.S., futures for the S&P 500 and Dow Jones were down by 0.2%.
Asian Market Updates
In Asia, Tokyo’s Nikkei 225 fluctuated but managed to close 0.3% higher, reaching a new record of 71,250.06. Despite high fuel costs, consumer prices excluding fresh foods remained steady, but analysts anticipate a future increase. South Korea’s Kospi dipped 0.1% to 9,052.42. Australia’s S&P/ASX 200 saw a 0.9% decline, while India’s Sensex fell 0.8%. Markets in Hong Kong, Shanghai, and Taiwan were closed for the Dragon Boat festival.
U.S. Market Recovery
On Thursday, Wall Street rebounded from previous losses with significant gains in technology stocks, prompting a positive week. The S&P 500 rose by 1.1%, the Dow increased by 0.1%, and the Nasdaq jumped 1.9%. This recovery was largely driven by advancements in major technology companies.
Intel’s stock rose 10.6% following the announcement by President Donald Trump that it will produce chips for Apple in the U.S. Other semiconductor stocks such as Nvidia and Micron Technology also saw gains.
Conversely, SpaceX experienced another loss, declining 3.6% following its entrance into the stock market.
Oil and Energy Prices
Oil prices experienced fluctuations after the U.S. and Iran reached an agreement. Brent crude ended the day 0.4% up at $79.85 per barrel, although U.S. benchmark crude dropped 0.2% to $75.85 per barrel. Early Friday saw Brent crude slightly down at $79.50 per barrel.
Despite current prices being higher than $70 per barrel before the conflict, they remain below previous highs of over $100. Rising energy costs continue to affect inflation rates.
Economic Impact
Gasoline prices in the U.S. have decreased to below $4 a gallon, yet remain 25% higher compared to the previous year. The Federal Reserve kept interest rates steady this week, but due to hot inflation, an increase is anticipated by the year’s end. Lower rates normally facilitate growth by making borrowing easier but can also drive inflation.
On Friday, the U.S. dollar fell slightly to 161.31 Japanese yen, and the euro held steady at $1.1458.