Global stock rally extends, oil advances on Iran: Markets Wrap
Global stocks traded near a record high as Asian shares tracked Wall Street higher after soft US jobs data eased expectations for a Federal Reserve interest-rate hike
Global stock markets reached near-record highs as Asian shares mirrored Wall Street's gains following weaker than expected US jobs data, easing expectations for an imminent Federal Reserve rate hike. Oil prices advanced further as Iran refused negotiations with the United States, while a deal to reopen the Strait of Hormuz remained out of reach.
The broad MSCI All Country World Index rose 0.1%, marking its seventh consecutive day of gains. The Asian MSCI gauge climbed 0.4%, tracking Wall Street's rally that pushed the S&P 500 Index to a new all-time high. Futures suggested modest gains for US indices, while Europe was expected to open flat. Brent crude prices increased by 0.5% to near $84 a barrel, extending a more than 5% rally over three sessions.
As oil prices surged, yields on US Treasuries fell slightly, with the 10-year yield reaching 4.66%. The US dollar strengthened against most of its Group-of-10 counterparts. This move followed a week of market volatility, as investors debated whether technology spending and high valuations would generate adequate returns. Focus now shifted to upcoming US consumer price data after Friday's jobs report reduced concerns about an imminent interest rate hike.
The jobs data revealed employers unexpectedly cut jobs in July, with prior two months' hiring revised lower, indicating a weaker labor market than previously thought. Traders reduced the likelihood of a rate hike at the Federal Reserve's September meeting to around 43%, down from 64% a week prior. Meanwhile, gold prices remained steady at around $4,340 an ounce, marking the best weekly gain since January.
The Japanese yen weakened against the dollar, trading at around 158.30 per dollar, as its strength from recent intervention faded, leaving traders wary of further official action. President Trump signaled patience in an interview, suggesting the US could wait for Iran's economic struggles to ease its stance. This followed weeks of threats of massive airstrikes on Iran, which he later backed down from, hoping for a chance to negotiate.
Despite the geopolitical uncertainty, investors remained optimistic, attributing the market's rise to solid fundamentals, strong economic growth, and rising productivity.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
