By Dow Jones Newswires Staff
Global markets were mixed and U.S. futures fell as geopolitical threats continued to hang on markets. Investors again sought refuge in precious metals--sending silver and gold to record highs in Asian trading--as the U.S. continued to threaten direct intervention in Iran. The dollar and U.S. government bonds traded steady as markets watch for delayed November U.S. retail sales and a round of Supreme Court opinions that could include a decision on the legal basis of President Trump's tariff regime. Oil slipped slightly after settling higher in early trading.
--U.S. stocks continued to slip premarket, as futures for the Dow Jones Industrial Average, S&P 500 and the tech-heavy Nasdaq all fell around 0.2% despite Tuesday's benign inflation data. Wednesday earnings include Bank of America and Citigroup, and traders will also watch for November's delayed U.S. retail sales and producer prices data.
--In Asia, the Japanese Nikkei 225 surged again--up 1.5%--extending Monday's record high as investors anticipate Prime Minister Sanae Takaichi will call a February election. Hong Kong's Hang Seng index climbed 0.6%, while China's benchmark Shanghai Composite declined 0.3%.
--European indexes mostly rose at the open. Spain's IBEX 35 was up 0.65%, with broad gains led by Madrid-listed shares in steel producer ArcelorMittal, which climbed 1.4%. In Paris, the CAC 40 was up 0.6%, recovering losses over the last two days. Ray-Ban maker EssilorLuxottica led the rally, climbing 2.5%. London's FTSE 100 also gained--up 0.25%--as miners surged on further increases in the price of metals. However, BP slipped 0.8% after warning of an up to $5 billion impairment. Italy's FTSE MIB advanced 0.3%, led by cement-maker Buzzi. The German DAX nudged up 0.1% after recording another record close Tuesday, with pharmaceutical giant Bayer up 2.35%. The Dutch AEX edged down 0.05%, driven by semiconductor stocks.
--The DXY dollar index traded steady at 99.122 as investors moved cautiously. Fed independence remained a concern, though the impact on the dollar is modest so far after several Republican lawmakers opposed the Justice Department's move to investigate Chair Jerome Powell.
--U.S. Treasury yields edged lower in Asian trade. The two-year Treasury yield fell 0.8 basis point to 3.520% and the 10-year yield declined 0.4 basis point to 4.166%.
--Yields on U.K. government bonds rose modestly, tracking moves in U.S. Treasurys. 10-year gilt yields climbed 1 basis point to last trade at 4.407%.
--Bitcoin climbed 1.2% to $95,199, close to an overnight high of $95,994, due to optimism over crypto regulatory developments and Tuesday's U.S. inflation print. The Senate Banking Committee will on Thursday debate a bill that would create a regulatory framework for cryptocurrencies. The legislation could improve regulatory clarity and encourage adoption of digital assets.
--Oil prices slipped in early trading after settling 2.5% higher in the previous session, as traders weighed a report that Venezuela has resumed crude exports under U.S. supervision and escalating unrest in Iran. Brent and WTI were both down 0.8% to $64.97 a barrel and $60.68 a barrel, respectively. Caracas has begun reversing production cuts made under a U.S. embargo and is instructing joint ventures in the country to resume output from well clusters, Reuters says, citing unnamed sources. Meanwhile, "any disruption to Iran's oil industry threatens up to 3.5 million barrels a day of oil, of which nearly 2 million barrels a day reaches the international market," ANZ analysts said. Investors now await official EIA figures due later on Wednesday following reports that crude stocks in the U.S. rose by 5.2 million barrels last week.
--Precious metals climbed to record highs, with silver breaking above $90 an ounce on softer-than-expected U.S. inflation data and rising geopolitical risks. In early trading, New York gold futures rose 0.9% to $4,642.60 a troy ounce after reaching a record of $4,647.60. Silver futures soared 4.2% to $90.02 an ounce, having hit a high of $91.37 earlier in the session. Traders' expectations for the Fed to cut rates by mid-year got a boost from the latest CPI reading, benefiting non-yielding assets. "Persistent tensions, including political pressure on the Fed and geopolitical flashpoints, have lent further support to precious metals, with some possibility that silver and gold could reach new milestones in the coming months," said Soojin Kim from MUFG. "Markets are also watching a U.S. section 232 investigation that could lead to tariffs on silver, potentially tightening available inventories."
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
01-14-26 0442ET
