Asian and US stocks stall as oil and gold climb on weak dollar

Asian and US stocks showed mixed moves recently, while oil and gold edged up slightly due to the weakening dollar. At the same time, the euro held near a three-and-a-half-year high. 

The overall mood in the markets improved after a ceasefire between Israel and Iran appeared to hold, easing fears of oil supply disruptions and lifting market sentiment.

Still, MSCI’s broadest index of Asia-Pacific stocks was up only slightly, while Tokyo’s Nikkei climbed 1.6 percent to reach a four-month peak. At the same time, South Korea’s Kospi dipped by 1.07 percent.

Hong Kong’s Hang Seng index was also down by 0.3% while the CSI 300 remained mostly steady.

Dollar hit fresh 3.5 year lows on the Euro

Pressure on the U.S. dollar intensified after media reports suggested Trump might announce a proposed replacement for Federal Reserve Chair Jerome Powell by September or October.

That speculation drove the euro up to $1.6837, its strongest level since November 2021. The Swiss franc also firmed to a ten-year high, and the Japanese yen was up 0.3 percent to 144.815 per dollar.

Trump has been criticizing Powell for not cutting interest rates more aggressively and has even hinted at firing him, moves that have rattled investor confidence in U.S. assets and raised questions about the Fed’s independence.

The U.S. dollar index lied at its weakest since March 2022, down roughly 10 percent so far this year as investors, worried by Trump’s tariff threats and their possible impact on economic growth, seek alternatives.

At the same time, Gold edged up on Thursday due to the weakening dollar. Spot gold increased by 0.1 percent to $3,336.02 per ounce by 06:40 GMT. US Gold futures increased by 0.2 percent to $3,349.30.

It was expected of gold, as the bullion continues to do well during uncertain periods.

Oil prices edged up while US stocks made mixed moves

In energy markets, Brent crude futures nudged up 0.8 percent to $68.21 a barrel, while U.S. West Texas Intermediate crude was up by 0.9 percent to $65.48, as traders continued to digest the impact of the Middle East tensions on supply.

Equity futures also ticked higher early on Thursday. S&P 500 futures rose 0.12 percent, and Nasdaq-100 futures added 0.17 percent.

Dow Jones Industrial Average futures was up 38 points, or 0.09 percent. This followed Wednesday’s session in which the S&P 500 closed flat, the Nasdaq Composite advanced 0.3 percent, and the Dow fell by 0.25 percent (106.59 points). 

Despite those mixed moves, all three indexes remain on track for weekly gains, and the S&P 500 sits less than 1 percent below record high in February.

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