Global equities were mixed yesterday as new US data showed domestic job growth, although consumer sentiment fell and oil prices remained elevated on continued fighting near the Strait of Hormuz.
European stocks dipped, but the S&P 500 added 0.8 per cent, and the Nasdaq Composite jumped 1.4pc. The Dow Jones Industrial Average was little changed. Chipmakers recovered, including Qualcomm, up about 10pc, while Nvidia was 2.3pc higher.
Oil prices rose again yesterday after renewed fighting near the Strait of Hormuz raised questions about the ceasefire between the United States and Iran. Benchmark Brent crude futures were last up 1.3pc to around $101 a barrel.
US employment increased more than expected in April while the unemployment rate held steady at 4.3pc, pointing to labour market resilience and reinforcing expectations that the Federal Reserve would leave interest rates unchanged for some time.
“More solid jobs data leaves the Fed where it’s been for a while – watching and waiting, focused on the inflation side of its mandate,” said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management.
“Rate cuts still aren’t on the near-term horizon, but the absence of inflationary threats in today’s report should quiet some of the chatter about a potential hike.”
At the same time, US consumer sentiment slumped to a record low in early May as higher petrol prices weighed on household finances and purchasing power, a survey showed yesterday.
The US and Iran exchanged fire in the Gulf and the UAE came under renewed attack, testing a month-long ceasefire. Both sides played down the situation, leaving investors uncertain.
“The market seems to be taking every chance to price in a quick end to the war,” said Jan von Gerich, chief analyst at Nordea.
“But it seems unlikely there’s going to be an agreement. I still think there are going to be disruptions in the Strait (of Hormuz) for a longer time and it won’t be resolved any time soon.”
European stocks were lower. The pan-continental STOXX 600 was down 0.77pc.
Asian equities slipped from recent highs but remained on track for a robust week, supported by strong revenue and spending plans from US AI hyperscalers, which have boosted regional chipmakers.
MSCI’s broadest index of Asian shares outside Japan fell 0.8pc, although South Korea’s KOSPI inched up 0.1pc, bringing its weekly gain to more than 13.5pc – its largest since 2008 – helped by rallies in Samsung and SK Hynix.
Taiwan’s benchmark was up 7pc this week and Japan’s Nikkei rose 5.4pc.
The dollar edged lower and was set for a second straight weekly decline, while the yen remained in focus after Japan intervened in currency markets in early May to stem its slide, a source familiar with the matter told Reuters. The dollar was last down 0.17pc to 156.64 yen, and was headed for a second weekly fall against Japan’s currency.
Gains beyond 155 have proved difficult to sustain following suspected intervention totalling nearly $70 billion since last Thursday.
The euro last bought $1.177, while China’s yuan , Asia’s best-performing currency since the war broke out, hovered near 6.8 per dollar, close to its strongest since 2023.
The pound and UK government bonds climbed yesterday after British Prime Minister Keir Starmer said he would not resign despite bruising losses for his ruling Labour Party in local elections.
A US trade court ruled President Donald Trump’s latest 10pc temporary global duties are unjustified under a 1970s trade law. But analysts expect a swift appeal and little overall impact on US levies.
Treasury yields were slightly lower yesterday, with the benchmark 10-year yield at 4.364pc, down 3 basis points. Bitcoin was drifting towards a sixth weekly gain in a row at $79,679.
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