By Dow Jones Newswires Staff
Investors turned back to risk in hopes that a peace deal between the U.S. and Iran would soon be agreed.
Oil was steady and global stocks rose as mediators work to secure a second round of talks between the two sides. Markets continue to be highly sensitive to geopolitical developments as major hurdles remain. Iran warned the U.S. against continuing its blockade of Iranian commercial ships and the Strait of Hormuz remained closed.
Japan's Nikkei stock index closed at a record high after the S&P 500 and the tech-heavy Nasdaq did the same in the U.S. The dollar weakened and U.S. Treasury yields pulled back, while precious metals extended their rally.
--In early European trading, Brent crude rose 0.7% to $95.64 a barrel, while WTI was up 0.8% to $92.07 a barrel. U.S. crude oil inventories fell for the first time in eight weeks as exports picked up, with buyers turning to alternative suppliers due to severe disruptions in the Persian Gulf.
--U.S. stock futures edged higher as the Nasdaq and S&P 500 looked to extend record highs. Futures tied to the S&P 500 were 0.2% higher, while the Dow Jones Industrial Average was up 0.1% in early European trade. The tech-heavy Nasdaq was 0.45% higher, on course to notch its twelfth-straight day of gains. Netflix will report earnings after market close.
--Asian equities were broadly higher on Thursday as investors remained hopeful that U.S. and Iran will reach a peace deal soon. Japan's Nikkei Stock Average closed 2.4% higher at a record 59518.34, with electronics stocks leading gains. South Korea's Kospi ended 2.2% higher, while China's Shanghai Composite Index added 0.7%.
Tech stocks surged as investors reacted positively to earnings from Taiwan Semiconductor Manufacturing Company.
--European blue-chip indexes edged higher at the opening bell. Tech was the best performing sector, though airlines slid as concerns around jet-fuel costs persist. The Europe-wide Stoxx 600 was 0.2% higher. The Dutch AEX index climbed 0.5% as semiconductor company ASML--Europe's most valuable company--jumped 2.9% following results for key customer TSMC.
In Paris, the CAC 40 climbed 0.2% as luxury stocks stabilize after tumbling in the last session. The U.K.'s FTSE 100 was 0.2% higher, while the German Dax 40 was flat at as gains for tech and energy-sensitive stocks are countered by falls in healthcare. The Italian FTSE MIB was 0.4% higher
--The dollar edged lower after reaching a six-week low overnight on renewed Federal Reserve independence risks and cautious optimism over an Iran war peace deal. President Trump threatened to remove Federal Reserve Chair Jerome Powell from office if he stays on as a governor after his term ends. The DXY dollar index fell 0.1% to 98.003 after reaching as low as 97.832 overnight.
--U.S. Treasury yields edged lower in Asian trade. The two-year Treasury yield fell 1.7 basis points to 3.747% and the 10-year yield declined 0.7 basis points to 4.271%, according to Tradeweb.
Eurozone government bond yields fell in early trade, led by outperforming Italian BTPs. Bonds benefited from scaling back of interest-rate hike expectations in the wake of high oil prices. "Bond markets grow increasingly numb to headlines out of the Middle East with supply and European Central Bank color in focus," Commerzbank's Hauke Siemssen said in a note. Money markets expect the ECB to keep rates on hold at the April meeting, according to LSEG. The 10-year German Bund yield fell 2.6 basis points to 3.012%, while the 10-year Italian BTP yield was down 3.6 basis points at 3.767%, according to Tradeweb.
U.K. government bond yields fell after U.K. monthly GDP data for February came in stronger than expected at 0.5%.
--Bitcoin rose 0.1% to $74,937, LSEG data show.
--Gold prices continued to trade above $4,800 a troy ounce. "While higher real rates, a firmer dollar, and profit-taking could weigh on near-term price action, recent pullbacks suggest underlying demand remains resilient," analysts at ING said. In early European trading, New York gold futures were up 0.5% to $4,849.60 a troy ounce. Silver was up 1% to $80.41 an ounce, while platinum rose 0.9% to $2,150.20 an ounce
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
04-16-26 0425ET
