BANGKOK (AP) — Global stock markets displayed mixed performances on Friday, with U.S. futures experiencing a decline. Optimism regarding a U.S.-Iran agreement to end their conflict was impacted by delays in critical talks aimed at resuming discussions over Iran’s nuclear program and facilitating oil transit through the Strait of Hormuz. U.S. markets were closed on Friday in observance of Juneteenth.
Planned discussions in Switzerland between Iran and the United States, focused on achieving a permanent resolution to their conflict, faced delays. Meanwhile, Israel reported that its military targeted locations in southern Lebanon overnight. Hezbollah confirmed intense clashes in the region. Bas van Geffen from RaboResearch commented, “Both sides are trying to show some good faith. But even if the water appears calmer, there is still a strong undertow. The agreement remains fragile on multiple fronts.”
Germany’s DAX rose by 0.2% to 25,079.30. The CAC 40 in Paris remained nearly unchanged at 8,467.75. Britain’s FTSE 100 dropped by 0.2% to 10,376.64. U.S. futures for both the S&P 500 and Dow Jones Industrial Average decreased by 0.2%. In Tokyo, the Nikkei 225 fluctuated but ultimately closed 0.3% higher, reaching a record 71,250.06. Although consumer prices excluding volatile fresh foods remained steady, analysts expect an increase in the upcoming months despite rising fuel costs.
Higher inflation prompted the Bank of Japan to raise its benchmark interest rate earlier this week to 1%, the highest in three decades, as it adjusts its long-standing low or negative rate policies. South Korea’s Kospi fell 0.1% to 9,052.42, close to the record set the previous day. Australia’s S&P/ASX 200 declined 0.9% to 8,828.70, while India’s Sensex dropped 0.8%. Markets in Hong Kong, Shanghai, and Taiwan were closed for the Dragon Boat festival.
On Thursday, Wall Street experienced gains that negated most losses from the previous day, achieving weekly gains thanks to substantial advancements in major technology companies. Anticipation of potential interest rate increases by the Federal Reserve drove the prior decline. The S&P 500 rose 1.1%, the Dow industrials increased 0.1%, and the Nasdaq composite surged 1.9%.
Technology stocks significantly influenced the market’s rise. Intel’s shares jumped 10.6% following an announcement by President Donald Trump that the company will manufacture chips for Apple domestically. Other semiconductor giants recorded gains, with Nvidia rising 3% and Micron Technology soaring 8.7%. Conversely, SpaceX experienced a second consecutive day of losses, dropping 3.6% after a previous 4.9% decrease, following its recent stock market debut.
Oil prices fluctuated after the U.S. and Iran signed a deal to end their conflict and reopen the Strait of Hormuz for oil tanker traffic. Brent crude, the global benchmark, finished the day slightly up by 0.4% at $79.85 per barrel. U.S. benchmark crude declined by 0.2% to $75.85 per barrel. Early Friday saw Brent crude dip by 0.4% to $79.50 per barrel, while U.S. benchmark crude remained flat at $75.85 per barrel. Despite current prices being higher than pre-war levels of around $70 per barrel, they are notably lower than the recent $100-plus figures.
Increasing energy costs have intensified inflationary pressures. Although the average gasoline price in the U.S. has fallen below $4 a gallon, it still remains 25% higher compared to a year ago. Costs for a variety of goods have risen due to elevated shipping expenses. The Federal Reserve kept the key interest rate unchanged this week, but persistent inflation suggests a possible rate hike by year-end. Lower interest rates typically facilitate borrowing for businesses and households, promoting growth, but they can also exacerbate inflation.
On Friday, the U.S. dollar declined to 161.31 Japanese yen from 161.38 yen. The euro remained steady at $1.1458.