Manila, Oct 9 (AP) – European markets presented a mixed picture in early trading on Thursday. In contrast, Asian stocks largely saw gains after US markets climbed to new highs, following a brief downturn.
The futures for the S&P 500 and the Dow Jones Industrial Average both ticked up slightly, each rising by less than 0.1%. Meanwhile, China's markets experienced a greater than 1% gain as they resumed trading after a weeklong holiday hiatus.
Early trades in Europe saw Germany's DAX index increase by 0.2%, reaching 24,634.96. France's CAC 40 remained largely unchanged at 8,062.13, whereas the UK's FTSE 100 declined by 0.4% to fall to 9,507.00, weighed down by banking and housing stocks.
Oil prices initially fell but managed a modest recovery after Israel and Hamas reached an agreement to suspend hostilities in Gaza. This truce aims to secure the release of hostages in exchange for Palestinian detainees, marking the most significant breakthrough in the prolonged two-year conflict. The development reduced perceived risks in the unstable region.
In response, US benchmark crude oil increased by 12 cents to $62.67 per barrel on Thursday afternoon. Brent crude, the global benchmark, similarly rose by 12 cents, reaching $66.37 per barrel.
Gold, while experiencing some losses after its recent steep climb, remained valued at $4,051.80 per ounce on Thursday afternoon.
Japan's Nikkei 225 saw a rise of 1.8%, closing at 48,580.44. This was bolstered by an 11% surge in SoftBank Group shares, following its announcement of a $5.4 billion acquisition deal for the robotics division of Swiss engineering company ABB.
Hong Kong's Hang Seng index slipped by 0.3% to 26,740.37, while the Shanghai Composite index gained 1.3%, closing at 3,933.97 upon reopening after a trading break since October 1.
Elsewhere, Australia's S&P/ASX 200 rose by nearly 0.3% to 8,969.80. Taiwan's Taiex index pared earlier larger gains, finishing 0.9% higher. Taiwan Semiconductor Manufacturing Co, a world leader in contract chip manufacturing, reported a 30% increase in third-quarter revenue, surpassing market expectations, and its shares climbed 2.1%.
On Wednesday, Wall Street rallied, with the price of gold continuing its upward trajectory beyond $4,000 per ounce.
The S&P 500 gained 0.6% to reach a record high of 6,735.72 after a short pause in its seven-day winning streak. Conversely, the Dow Jones Industrial Average marginally dipped by less than 0.1% to 46,601.78, while the Nasdaq composite surged 1.1%, achieving a new record at 23,043.38.
Recent trading has been subdued due to the US government's latest shutdown, delaying critical economic reports that often drive market movements. Consequently, stocks have had minimal direction without these usual metrics or other signals to anticipate potential interest rate cuts by the Federal Reserve—a key factor in the stock market's rally since April.
Another significant factor propelling the market to record levels has been the rapid growth in investments related to artificial intelligence technology.
Advanced Micro Devices (AMD) increased by 11.4%, maintaining its rally earlier in the week after announcing an AI-related agreement. AMD emerged as the top-performing stock in the S&P 500.
Dell Technologies followed closely, with its stock rising 9.1%, adding to its gains from Tuesday. Dell had highlighted its expansion prospects linked to AI advancements.
Poet Technologies saw a 17% boost to their rally from Tuesday, backed by raising $75 million in investment to accelerate its growth. The firm provides high-speed optical engines for AI systems.
AI-related stocks continue to perform strongly, with Nvidia soaring nearly 41% this year. Oracle has seen a 73.2% surge over the same period, while Palantir Technologies more than doubled with a 143% rise.
The impressive performance of AI stocks has sparked discussions over whether prices have escalated excessively, reminiscent of the dot-com bubble in 2000 that led to a dramatic market downturn, cutting the S&P 500’s value in half.
In early Thursday transactions, the US dollar increased slightly to 152.75 Japanese yen from 152.70 yen. The euro, however, dipped to $1.1617 from $1.1629. (AP)
(Only the headline of this report may have been reworked by Editorji; the rest of the content is auto-generated from a syndicated feed.)
