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World Shares Mixed, Oil Prices Higher 08/10 05:06
Shares were mixed Monday in Europe and Asia, with Japan's Nikkei 225 leading
advances after stocks rose on Wall Street.
BANGKOK (AP) -- Shares were mixed Monday in Europe and Asia, with Japan's
Nikkei 225 leading advances after stocks rose on Wall Street.
Oil prices rose as the status of efforts to end the conflict in the Middle
East remained uncertain.
In early European trading, Germany's DAX rose 0.3% to 26,411.01, while the
CAC 40 in Paris edged 0.1% lower, to 8,703.73. Britain's FTSE 100 lost 0.3% to
10,869.35.
The future for the S&P 500 was up 0.1%, while that for the Dow Jones
Industrial Average slipped 0.1%.
In Tokyo, the benchmark Nikkei 225 jumped 2.1% to 66,970.22, pulled higher
by strong gains for technology companies.
Computer chip equipment maker Tokyo Electron climbed 4.1%, while chip
testing device maker Advantest rose 6.4%.
In South Korea, the gains were more modest, as the Kospi added 0.7% to
6,299.66 as shares in major chipmakers slipped. Samsung Electronics lost 0.4%,
while its smaller rival, memory chipmaker SK Hynix, lost 0.1%.
Analysts said foreign investors were selling shares in the Big Tech
companies to lock in profits from recent gains and rebalance holdings into
other industries, such as defense contractors.
Hong Kong's Hang Seng gained 1.1% to 25,937.49, while the Shanghai Composite
index picked up 0.7% to 3,966.59.
In Australia, the S&P/ASX 200 lost 0.3% to 9,232.60.
Taiwan's Taiex surged 1.6% and the Sensex in India was nearly unchanged.
Oil prices rose after Israel rejected a deal announced by U.S. President
Donald Trump for Gaza. Details emerged on the potential deal between Iran and
Oman on managing the Strait of Hormuz as Tehran suggested that vessels linked
to "hostile countries" would be barred.
Meanwhile, Yemen's Iranian-backed Houthi rebels struck a government-held
port on the country's Red Sea coast, deepening fears over threats to strategic
shipping routes and a potential return to civil war.
Brent crude, the international standard, gained 0.8% to $84.23 per barrel.
U.S. benchmark crude advanced 0.7% to $78.72 per barrel.
"Negotiators said that a deal to establish a safe shipping route was close,
but Iran may now be exploring just how much it can extract from the U.S. in
return," Bas van Geffen, senior macro strategist for Rabobank, said in a
commentary.
This week, investors will get several important inflation updates for the
U.S. The most closely watched will be the consumer price index, or CPI, which
measures costs for consumers. Inflation in July is forecast to have risen at a
3.4% rate, easing slightly from 3.5% in June. Inflation has held stubbornly
above 3% for most of the year.
On Friday, U.S. stocks rose and Treasury yields fell after the government
reported that employers unexpectedly cut 23,000 jobs last month.
A weaker jobs market raised hopes the Federal Reserve might wait longer
before raising interest rates to fight inflation. That buoyed share prices,
pushing every major index to a second straight week of gains and several fresh
records.
The S&P 500 rose 0.6% to 7,757.64, topping an all-time high. The Dow
industrials rose 0.3% to 54,036.93, just short of the record it set on
Wednesday. The Nasdaq composite rose 1.3% to 26,690.62.
Overall, the jobs report dimmed one of the brighter areas of the economy,
adding to worries about household spending at a time of high inflation. It
included a revision to the figures for June and May that involved slashing a
combined 103,000 jobs from payrolls for those months.
Slowing employment complicates the Fed's effort to balance job growth with
fighting inflation. Higher interest rates can help tame inflation by slowing
economic growth, but businesses will find it more difficult to expand under
increased borrowing rates.
As usual, technology stocks did much of the heavy lifting for the broader
market. Nvidia jumped 2.3% and Broadcom rose 1.7%.
In other dealings early Monday, the U.S. dollar rose to 158.72 Japanese yen
from 157.71 yen. The euro fell to $1.15617 from $1.1568.
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