Global stocks were mixed on Thursday as Europe prepared for key elections, the United States awaited influential inflation data and a presidential debate and Japan considered moves to strengthen the yen.
The Japanese currency scraped only a small gain against the dollar after hitting a 38-year low on Wednesday, putting investors on alert for possible intervention by Japanese authorities.
Investors meanwhile awaited the results of the French and British general elections due next week.
Wall Street stocks ended on average higher after a volatile session, with investors looking ahead to key inflation data as well as Thursday night’s presidential debate with US President Joe Biden and his predecessor Donald Trump.
The debate “has filled the market with a bit of a wait-and-see attitude,” said Briefing.com analyst Patrick O’Hare.
Friday sees the release of the PCE index, the US Federal Reserve’s preferred measure of inflation.
“If this points to a further slowdown in price growth, then trading on the last day of June could go the same way as May, which saw a strong rise,” said Chris Beauchamp, chief analyst at market on the IG online trading platform.
“A softer PCE reading could renew hopes for a September rate cut, which have taken a knock of late,” he added.
In Japan, Deputy Finance Minister Masato Kanda said this week that authorities were closely watching movements in foreign exchange markets and were ready to intervene to support the yen 24 hours a day.
Their resolve was tested as the yen fell to 160.87 per dollar late Wednesday — the weakest since 1986 — as US Treasury yields rose.
Analysts say it is possible that traders will continue to push the envelope to see at what point the government will act, with some saying the currency could reach 170.
In Europe, France’s political future was up in the air with the far right surging in the polls as President Emmanuel Macron’s centrist alliance struggles to gain ground. Paris stocks ended the day down 1.0 percent.
The French election comes ahead of a national vote in the United Kingdom on July 4, with right-wing conservatives led by Prime Minister Rishi Sunak expected to lose power to the center-left Labor Party. London’s blue-chip FTSE 100 index fell 0.6 percent.
– Key figures around 2030 GMT –
New York – Dow: UP 0.1 percent to 39,164.06 (close)
New York – S&P 500: Up 0.1 percent to 5,482.87 (close)
New York – Nasdaq Composite: UP 0.3 percent to 17,858.68 (close)
London – FTSE 100: DOWN 0.6 percent to 8,179.68 (close)
Paris – CAC 40: DOWN 1.0 percent to 7,530.72 (close)
Frankfurt – DAX: UP 0.3 percent to 18,210.55 (close)
EURO STOXX 50: DOWN 0.3 percent at 4,902.60 (close)
Tokyo – Nikkei 225: DOWN 0.8 percent to 39,341.54 (close)
Hong Kong – Hang Seng Index: DOWN 2.1 percent to 17,716.47 (close)
Shanghai – Composite: DOWN 0.9 percent to 2,945.85 (close)
Dollar/yen: DOWN at 160.79 yen from 160.81 yen on Wednesday
Euro/dollar: UP at $1.0707 from $1.0681
Euro/pound: UP to 84.67 pence from 84.62 pence
Pound/dollar: UP at $1.2642 from $1.2622
Brent North Sea crude: UP 1.3 percent to $86.39 a barrel
West Texas Intermediate: UP 1.0 percent to $81.74 a barrel
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