World markets experienced mixed results on Friday. U.S. futures declined amid tempered optimism about the recent U.S.-Iran agreement aimed at ending hostilities. Talks regarding reopening negotiations over Iran’s nuclear program and reopening the Strait of Hormuz have been postponed. U.S. markets will remain closed for the Juneteenth holiday.
Negotiations between the U.S. and Iran in Switzerland have been delayed. Meanwhile, Israel conducted military strikes in southern Lebanon, responding to reports of intense fighting with Hezbollah. According to Bas van Geffen of RaboResearch, both sides show intentions for peace, but the agreement remains fragile with significant underlying tensions.
In Europe, the DAX in Germany rose 0.2% to 25,079.30. France’s CAC 40 saw little change, closing at 8,467.75. Britain’s FTSE 100 fell by 0.2% to 10,376.64. U.S. futures for the S&P 500 and Dow Jones Industrial Average dipped by 0.2%.
Tokyo’s Nikkei 225 fluctuated but closed 0.3% higher at a record 71,250.06. Consumer prices there, excluding fresh foods, held steady. Experts predict a rise in inflation despite rising fuel costs. The Bank of Japan recently increased its interest rate to 1%, marking the highest in 30 years.
South Korea’s Kospi dropped 0.1% to 9,052.42, while Australia’s S&P/ASX 200 declined 0.9% to 8,828.70. India’s Sensex decreased by 0.8%. Markets in Hong Kong, Shanghai, and Taiwan were closed due to the Dragon Boat Festival.
On Thursday, Wall Street saw gains as major tech companies advanced. The Federal Reserve is likely to raise interest rates by year-end to combat inflation. The S&P 500 increased by 1.1%, the Dow rose 0.1%, and the Nasdaq composite jumped by 1.9%. Intel’s shares surged by 10.6% following President Donald Trump’s announcement about manufacturing chips for Apple in the U.S. Nvidia and Micron Technology also saw increases.
SpaceX experienced continued losses, falling another 3.6% following its market debut last week. Oil prices fluctuated as the U.S. and Iran agreed to end their conflict and reopen the Strait of Hormuz. Brent crude settled 0.4% higher at $79.85 per barrel, while U.S. benchmark crude fell 0.2% to $75.85. Early Friday, Brent crude was down to $79.50 per barrel.
Despite the recent conflict, oil prices remain above $70 per barrel but below the $100-plus range from weeks prior. Rising energy costs contribute to inflation. Although U.S. gasoline prices dipped below $4 per gallon, they remain 25% higher than last year due to elevated shipping costs.
The Federal Reserve’s decision to keep interest rates steady reflects ongoing inflationary pressures, indicating a potential rise in rates by year-end. Lower rates support business and consumer borrowing but can heighten inflation.
On Friday, the U.S. dollar was valued at 161.31 Japanese yen, slightly less than 161.38 yen previously. The euro remained steady at $1.1458.
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