Global stocks rose on Wednesday, lifted by energy shares, after crude prices hit six-week highs, while US equity futures fell ahead of key earnings from US Big Tech and the dollar dipped against other major currencies.
Traders also kept a wary eye on the Japanese yen that nudged higher after sources says that the Bank of Japan was on alert to upside inflation risks that could lead to faster interest rate hikes than markets project.
Two oil tankers carrying Saudi crude to Asia reversed course in the Red Sea on Tuesday following threats of attack from Yemen’s Iran-aligned Houthis, dampening hopes that the end to the recent spike in tensions could be imminent, which sent Brent crude prices up 3.5% to US$94.22 a barrel — their highest since early June.
President Donald Trump said all generic drugs brought into the US will carry a tariff of 0% for two years from Aug 1, after which the rate will rise to 100% for one year and 200% thereafter. He slapped a 50% tariff on some Canadian goods earlier this week.
The MSCI All-World index was last up 0.1% on the day, while in Europe, oil and gas stocks helped send the STOXX 600 up 0.6%. By contrast, futures on the tech-heavy Nasdaq slipped 0.6% and those on the S&P 500 were down 0.2%.
Market focus will turn to earnings after Wednesday’s closing bell from Alphabet, which is facing heightened scrutiny over the delayed launch of a key AI model, and Tesla, which is widely expected to report its first quarterly cash burn in over two years.
Yen bounces off 40-year lows
The Japanese currency found its footing at 162.98 per dollar after hitting a new 40-year low on Tuesday as investors weighed the measures officials would use to shore up the drooping currency.
Japanese Finance Minister Satsuki Katayama said on Wednesday that the government remains ready to take “decisive action” in currency markets if needed, while refraining from commenting on specific foreign-exchange levels.
The battered yen and soaring oil prices pushed Japan’s imports to a record high in June, though exports also topped expectations, helped by booming demand from AI-related data centres — and a weak currency that continues to boost overseas sales.
Source: theedgemalaysia