In the backdrop of the much-awaited meeting between world leaders Donald Trump, the President of the US; and Vladimir Putin, the Russian President, investors are waiting to see if the summit brings any lasting peace solution to the Ukraine war. If it does, the world’s share markets will experience some relief after the constant highs and lows brought on by Trump’s announcements of heightened tariffs on various nations.
Ahead of the meeting on August 15 in Alaska, world shares were mixed even as bitcoin rose to an all-time high of over $123,000 before settling at $122,000, according to CoinDesk.
Dow Jones Industrial Average rose 0.1 per cent higher, while S&P 500 remained unchanged, as did Britain’s FTSE 100, which was flat at 9,165.01 after the government reported the country’s economy grew at a faster annual rate than the last quarter.
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In quarterly terms, the UK’s economy grew 0.3 per cent, which was slower than its 0.7 per cent growth in January-March.
Germany's DAX rose 0.5 per cent to 24,296.02. In Paris, the CAC 40 added 0.4 per cent to 7,832.60.
In Chinese markets, Hong Kong's Hang Seng index shed 0.4 per cent to 25,519.32, while the Shanghai composite index slid 0.5 per cent to 3,666.44.
South Korea’s Kospi rose less than 0.1 per cent to 3,225.66, while Taiwan’s Taiex fell 0.5 per cent and India's Sensex edged 0.2 per cent higher.
In Australia, the S&P ASX 200 index added 0.5 per cent to 8,873.80.
During Asian trading, Tokyo's Nikkei 225 fell nearly 1.5 per cent to 42,649.26 as investors sold to lock in recent gains that have taken the benchmark to all-time records.
On Thursday, the US wholesale inflation data will be out, which economists expect to show higher numbers than 2.3 per cent recorded in June.
The Trump-Putin meeting could also have major implications for energy markets, especially if sanctions against Moscow get removed.
Early Thursday, US benchmark crude rose 28 cents to $62.93 per barrel. Brent crude, the international standard, added 32 cents to $65.95 per barrel.
Low interest rates tend to make the yen weaker against the dollar, giving Japanese exporters a cost advantage in overseas sales.
The dollar fell to 146.50 Japanese yen Thursday, down from 147.39 yen. The euro slid to $1.1681 from $1.1705.
Treasury yields eased in the bond market in anticipation that the Fed will cut its main interest rate for the first time this year at its next meeting in September.
Lower rates can boost investment prices and the economy by making it cheaper for US households and businesses to borrow to buy houses, cars or equipment, though they risk worsening inflation.
While Trump has been making public calls for the Federal Reserve to announce interest rate cuts to boost economy, America’s central bank has so far been wary of any knee-jerk reactions, opting instead to wait and watch for the effects of Trump’s tariffs on the US economy.
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