US stocks finished higher on Wednesday, while European shares closed at a record high, as investors weighed Federal Reserve meeting minutes alongside fresh geopolitical tensions that pushed oil and gold prices sharply upward.
The pan-European STOXX Europe 600 rose 1.19% to a record close, with defence and banking stocks leading gains. The broader FTSEurofirst 300 added 1.22%. Globally, MSCI’s world equity gauge climbed 0.60%.
On Wall Street, the three major indices ended in positive territory despite trimming earlier gains. The Dow Jones Industrial Average rose 0.26% to 49,662.66, the S&P 500 gained 0.56% to 6,881.32, and the Nasdaq Composite advanced 0.78% to 22,753.64.
Investor sentiment was shaped by minutes from the Federal Reserve’s latest policy meeting, which showed officials were broadly aligned in keeping interest rates unchanged, though divided over the timing of future adjustments.
Strong US durable goods and housing data reinforced expectations that rates would remain on hold, pushing Treasury yields higher. The benchmark 10-year yield rose to 4.087%, while the 30-year yield climbed to 4.7108%.
The dollar strengthened in response to the solid economic data and reports that European Central Bank President Christine Lagarde may leave her role earlier than expected. The dollar index rose 0.61% to 97.73, as the euro slipped 0.58% to $1.1784.
“(Lagarde) has been a calming voice, and it’s been nice to have solid leadership in place,” said Ryan Detrick, chief market strategist at Carson Group in Omaha.
He added, “Potential rumours that she might be leaving a tad earlier, it’s shaken up currency markets a little bit.”
Geopolitical developments also fuelled market moves. Ukraine peace talks ended without a clear resolution, with President Volodymyr Zelenskiy accusing Russia of delaying progress. Meanwhile, Iran’s temporary closure of parts of the Strait of Hormuz heightened concerns over global oil supplies.
This “double-whammy of continued geopolitical uncertainty … has led to higher oil and higher gold prices,” Detrick said.
Crude prices surged on supply disruption fears. US crude settled up 4.59% at US$65.19 per barrel, while Brent climbed 4.35% to US$70.35. Spot gold rose 2.22% to US$4,985.46 an ounce, with US gold futures up 2.03%.
In Asia, Japan’s Nikkei 225 rose 1.02%, while MSCI’s Asia-Pacific ex-Japan index edged up 0.09%. Emerging market equities gained 0.23%.
Cryptocurrencies retreated, with bitcoin falling 2.15% to US$66,196.23 and ethereum down 3.08% to US$1,938.20.
Reuters
