U.S. President Donald Trump’s statement that attacks against Iran may not last long, along with developments in the Middle East, supported risk appetite in global markets. Against this backdrop, the price of November-delivery Brent crude fell 0.5% to $95.1 per barrel.
The yield on the U.S. 10-year Treasury note fell 2 basis points to 4.78%. The move in Treasury yields contributed to the positive sentiment in global equity markets.
U.S. data reshaped interest-rate expectations
New York Fed President John Williams said inflation in the United States continued to decline as the impact of tariffs weakened. According to Williams, higher energy prices have not yet had a significant effect on other service sectors.
Private-sector employment in the United States increased by 38,000 in August. The below-expectation increase was viewed as a sign of partial stability in the labor market and strengthened expectations that inflationary pressures could ease somewhat.
Money-market pricing showed that the probability of the U.S. Federal Reserve raising interest rates this month fell from 70% to 62%. The Fed’s Beige Book also indicated that economic activity had increased moderately in recent weeks, while high prices, current policies and international conflicts had increased uncertainty.
The Bank of Canada kept its policy rate at 2.25%. The U.S. dollar fell 0.2% against the yen to 99.4.
Precious metals gain
Gold rose 1.1% on Thursday to $4,436 per ounce. A decline in demand for the dollar and a slowdown in the pace of the rise in oil prices supported the precious metal’s price.
Gold had fallen below $4,300 after the Jackson Hole Economic Symposium and then sought to remain above the $4,400 level. Silver also rose 1.3% over the same period to $66.2 per ounce.
U.S. indexes rise
Gains prevailed on the New York Stock Exchange on Wednesday. Chevron shares rose 0.4% after the company announced plans to invest $7 billion in Venezuela.
Shares of chipmaker Nvidia rose 3.2% amid optimism that companies’ demand for artificial intelligence was increasing. The value of new orders in the U.S. manufacturing sector also rose 0.9% month over month in July.
The Dow Jones rose 0.56%, the S&P 500 gained 0.46% and the Nasdaq advanced 0.45%. U.S. indexes also opened Thursday higher.
European and Asian markets diverge
European stock markets ended Wednesday lower under the influence of geopolitical risks in the Middle East. Joachim Nagel, president of Germany’s central bank, said data for the first two quarters of the year showed that the country’s economy was heading toward stronger growth and announced that he expected growth of about 1% in 2026.
Volkswagen shares fell 3.8% after the company was removed from the STOXX 50 index. France’s CAC 40 fell 0.26%, Italy’s FTSE MIB declined 0.24%, Germany’s DAX 40 dropped 0.5% and the U.K.’s FTSE 100 decreased 0.3%. European indexes opened Thursday mixed.
In Asia, the positive trend in U.S. markets spread to the region, with stocks generally heading toward a higher close on Thursday. In China, the RatingDog services Purchasing Managers’ Index rose from 50.4 to 51.4 in August, while Japan’s services PMI increased from 52.3 to 52.5.
The U.S. dollar/Japanese yen exchange rate fell 0.6% to 157.7 after Hajime Takata, a member of the Bank of Japan’s policy board, said an interest-rate hike was needed to balance inflationary pressures. Japanese officials have not yet confirmed intervention in the foreign-exchange market, while investors are monitoring possible steps that could further strengthen the yen.
Toward Thursday’s close, South Korea’s Kospi rose 0.7%, Japan’s Nikkei 225 gained 0.2%, Hong Kong’s Hang Seng advanced 0.02% and China’s Shanghai Composite increased 0.4%.
