Global stocks edged higher on Thursday as investors balanced softer-than-expected U.S. economic data with renewed uncertainty over the Iran conflict. The weaker data reduced expectations of a September Federal Reserve rate hike, with traders now pricing in a 65% chance that the Fed will keep rates unchanged, up from 50% the previous day.
Oil prices slipped to around $88 a barrel, remaining below the $90 mark. Concerns over weaker demand outweighed tensions surrounding stalled peace negotiations between the United States and Iran. U.S. crude inventories recorded their biggest weekly increase since January 2023, while OPEC lowered its forecast for global oil demand growth in 2026.
Technology stocks remained a key source of support for markets after strong earnings from AI infrastructure companies boosted Wall Street. The semiconductor index jumped 2.5% on Wednesday, while the Nasdaq outperformed other major U.S. indexes.
MSCI’s global stock index rose 0.10%, while Europe’s STOXX 600 gained 0.11%. Asian markets performed strongly, led by South Korea and Japan.
Meanwhile, the U.S. dollar climbed to a two-week high as investors worried that prolonged energy disruptions could hurt major oil-importing economies such as Europe and Japan. Attention now turns to U.S. producer price data for further clues on inflation and the Fed’s next move. - Global stocks edged higher on Thursday as investors balanced softer-than-expected U.S. economic data with renewed uncertainty over the Iran conflict. The weaker data reduced expectations of a September Federal Reserve rate hike, with traders now pricing in a 65% chance that the Fed will keep rates unchanged, up from 50% the previous day.
Oil prices slipped to around $88 a barrel, remaining below the $90 mark. Concerns over weaker demand outweighed tensions surrounding stalled peace negotiations between the United States and Iran. U.S. crude inventories recorded their biggest weekly increase since January 2023, while OPEC lowered its forecast for global oil demand growth in 2026.
Technology stocks remained a key source of support for markets after strong earnings from AI infrastructure companies boosted Wall Street. The semiconductor index jumped 2.5% on Wednesday, while the Nasdaq outperformed other major U.S. indexes.
MSCI’s global stock index rose 0.10%, while Europe’s STOXX 600 gained 0.11%. Asian markets performed strongly, led by South Korea and Japan.
Meanwhile, the U.S. dollar climbed to a two-week high as investors worried that prolonged energy disruptions could hurt major oil-importing economies such as Europe and Japan. Attention now turns to U.S. producer price data for further clues on inflation and the Fed’s next move. - Reuters
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