Stocks mixed as oil climbs, dollar drops
Major stock markets traded mixed in sparse summer trading Friday, with oil prices edging higher and the dollar slipping as investors assess the outlooks for US interest rates and the war in the Middle East.
Data this week showing cooler inflation in the United States has bolstered expectations that the Federal Reserve will not rush to raise borrowing costs, potentially crimping growth.
But with the US-Iran conflict showing little sign that it could soon end, worries about stubborn inflation dominated attention across markets.
"A few weeks ago, traders were being asked to justify why the Fed should not hike again," said Stephen Innes, global strategist at Quintex Intel.
"After the latest run of data, the burden of proof has flipped. The market now wants to know what would actually force the Fed to tighten," he said.
US Vice President JD Vance said Thursday that the country's top priority in the Iran war was to bring down gasoline prices for American consumers.
Energy prices on markets have in recent weeks swung between big gains and losses as resurgent strikes in the Middle East give way to hopes of a peace deal, and vice versa.
Away from the war, the technology sector continues to occupy the attention of stock markets.
Seoul gained more than two percent Friday as shares in the chipmakers SK hynix and Samsung recovered further following last month's selloff.
The country's Kospi index had tanked about 40 percent between hitting its June high and an intra-day trough on August 6, but has since rebounded more than 20 percent.
Friday also saw gains for Tokyo, where tech giants Kioxia, Advantest and Sony rallied along with the technology investment titan SoftBank.
Singapore, Jakarta, Bangkok, Manila and Wellington were also up, while Hong Kong, Sydney, Taipei and Mumbai slipped and Shanghai ended little changed.
In European midday deals, London dipped while Paris and Frankfurt rose, following gains on Wall Street on Thursday that saw the S&P 500 again hit a record high.
- Key figures around 1100 GMT -
London - FTSE 100: DOWN 0.1 percent at 10,766.27 points
Paris - CAC 40: UP 0.1 percent at 8,658.50
Frankfurt - DAX: UP 0.7 percent at 26,490.85
Tokyo - Nikkei 225: UP 0.6 percent at 68,713.80 (close)
Hong Kong - Hang Seng Index: DOWN 1.1 percent at 25,116.85 (close)
Shanghai - Composite: FLAT at 3,927.18 (close)
New York - DOW: DOWN 0.2 percent at 53,661.00 points (close)
Brent North Sea Crude: UP 0.2 percent at $87.20 per barrel
West Texas Intermediate: UP 0.6 percent at $81.75 per barrel
Euro/dollar: UP at $1.1555 from $1.1528 on Thursday
Pound/dollar: UP at $1.3528 from $1.3486
Dollar/yen: DOWN at 159.16 yen from 159.52 yen
Euro/pound: DOWN at 85.43 pence from 85.48 pence
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F.Hughes--TNT
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