Global markets traded mixed as investors sought direction amid uncertainty over the Federal Reserve's policy outlook and delays to an expected Middle East deal, while attention turned to US nonfarm payrolls data due Friday.
The lack of concrete progress toward peace in the Middle East causes concerns about potential new attacks, despite US officials saying an agreement is near.
US President Donald Trump said the ongoing negotiations with Tehran are proceeding well and that the talks on reopening the Strait of Hormuz are nearing completion, but Washington and Tehran have yet to fully agree on the waterway.
Oil prices hiked again after these statements, signaling that the Middle East tensions are far from being resolved.
An Iranian parliament committee reportedly reviewed a bill to block ships belonging to the US, Israel, and other countries deemed adversaries to Tehran from transiting the Strait of Hormuz, also driving up oil prices.
US jobless claims rise below estimates
Meanwhile, the number of US initial jobless claims rose to 199,000 in the week ending Aug. 1, below estimates, signaling that the labor market remains strong.
The Fed is 55% likely to hike rates by 25 basis points next month, while a rate hike is expected with an 85% probability in October, according to money market estimates.
Fed chair Kevin Warsh is reportedly prepared to raise the policy rate in September if inflation comes in high, according to a Financial Times report.
The US 10-year Treasury yield stood at 4.69% Friday, up from the previous session, amid concerns that rising energy prices will sustain inflationary pressures. The US Dollar Index held near 99.
Gold was trading at $4,264 per ounce on Friday, up 0.6% from the previous close.
Stock markets
Corporate financial results continue to influence the market.
Data storage firm Western Digital posted a 44% surge in revenue over the three-month period, while a near-11-fold increase in its profit, due to the massive memory demand, but its shares lost 13%.
SanDisk shares dropped 6.8% despite rising revenue in over the three-month period, as its revenue forecast for the next quarter did not meet expectations.
The S&P 500 fell 0.18%, the Nasdaq declined 0.06%, and the Dow Jones Industrial Average was down 0.85% on Thursday. American indexes started Friday on a mixed course.
Meanwhile, European stock markets traded positive on Thursday except for the UK.
The eurozone’s retail sales fell 0.3% month-on-month in June, defying expectations, while rising 0.7% on an annual basis, below estimates.
Juan Jesus Vivas, mayor-president of the autonomous North African Spanish city of Ceuta, called on the EU to strengthen the border with Morocco and deploy more personnel and send equipment to the region.
Vivas said some 80,000 people entered the city on July 30-31, while Madrid reported the official figure stands at 75,000 people.
Meanwhile, Trump said the Biden administration provided Ukraine with too many weapons and ammunition too soon, noting that the US sent large quantities of weapons and ammunition to many other countries as well, and that these could be retrieved if need be.
Alexey Fadeev, Russian Foreign Ministry deputy spokesperson, called on Washington to focus on a peaceful resolution to the war in Ukraine, saying Moscow is ready to hear American negotiators.
France's CAC 40 grew 0.35%, Italy's FTSE MIB 30 rose 0.44%, and Germany's DAX 40 increased 0.05%, while the UK's FTSE 100 dropped 0.19% on Thursday. European indexes opened Friday on a negative trend.
Asian markets
Asian equity markets traded mixed on Friday, driven by the developments in the Middle East and rising oil prices.
China posted a trade surplus of $112.5 billion in July and exports rising over expectations by 23.9%, indicating that the economic activity in the country remained strong. Imports to China surged 27.5% last month, below estimates.
Japan’s household spending dropped 3.3% in June, accelerating compared to May.
Near Friday’s close, Japan’s Nikkei 225 fell 0.4% and South Korea’s Kospi declined 0.6%, while Hong Kong's Hang Seng gained 0.1% and China's Shanghai Composite rose 0.5%.
