World markets showed varied performances on Friday amid postponed negotiations between the U.S. and Iran. This delay affected optimism surrounding an agreement to end their conflict and resume oil flow through the Strait of Hormuz.
U.S. markets were closed on Friday in observance of Juneteenth. Talks in Switzerland concerning a lasting peace with Iran were postponed. Meanwhile, tensions escalated as Israel reported military actions in southern Lebanon.
“Both sides are trying to show some good faith. But even if the water appears calmer, there is still a strong undertow. The agreement remains fragile on multiple fronts,” Bas van Geffen of RaboResearch commented.
European markets displayed modest changes. Germany’s DAX increased by 0.2% to 25,079.30. In contrast, the CAC 40 in Paris remained almost unchanged at 8,467.75, and Britain’s FTSE 100 dropped 0.2% to 10,376.64. Futures for the S&P 500 and Dow Jones Industrial Average declined by 0.2%.
Asian markets experienced fluctuations as well. Tokyo’s Nikkei 225 achieved a 0.3% rise, reaching a record 71,250.06. This came as Japan reported unchanged consumer prices excluding fresh foods. However, inflation is anticipated to rise in the coming months.
Japan’s inflation concerns led the Bank of Japan to elevate its benchmark interest rate to 1%, a significant change from previous near-zero or negative rates. South Korea’s Kospi narrowly missed its recent record, losing 0.1% to 9,052.42. Australia’s S&P/ASX 200 fell by 0.9% to 8,828.70, and India’s Sensex decreased by 0.8%.
Markets in Hong Kong, Shanghai, and Taiwan remained closed due to the Dragon Boat festival.
On Thursday, U.S. stocks bounced back from prior losses, driven by significant gains in technology sectors. The S&P 500 climbed 1.1%, Dow Industrials edged up 0.1%, and the Nasdaq composite surged 1.9%. Key players included Intel, which soared 10.6% after President Trump confirmed its chip production for Apple. Nvidia and Micron Technology also increased.
Conversely, SpaceX fell 3.6% following a 4.9% decrease the day before.
Oil prices fluctuated even with the U.S.-Iran agreement. Brent crude ended up 0.4% at $79.85 per barrel, and U.S. benchmark crude fell 0.2% to $75.85 per barrel. Early Friday saw Brent crude down 0.4% at $79.50 per barrel while the U.S. benchmark remained flat.
Despite these agreements, crude prices remain above $70 per barrel, though below recent peaks above $100. The energy costs pressure inflation rates, despite the dip in U.S. gasoline prices below $4 per gallon. The Federal Reserve kept its rate steady but may raise it by year-end due to inflation concerns.
In currency dealings, the U.S. dollar declined slightly to 161.31 Japanese yen. The euro held steady at $1.1458.