Stocks Stumble, Oil Rises on Middle East Tensions
August 26, 2024Indian Demand Strengthens Silver Prices, Pushing Towards $30.24 Amidst Geopolitical Tensions
August 28, 2024Gold and oil prices saw a slight decline on Tuesday after recent gains, as investors focused on geopolitical risks and awaited Nvidia’s earnings report and U.S. inflation data later in the week. European stocks remained steady, mirroring a late surge in Japan’s Nikkei index. Global stock indexes showed minimal changes, with positive profit reports from the largest listed miner BHP boosting investor sentiment. U.S. S&P 500 and Nasdaq futures remained unchanged. Gold stayed just above $2,500 per ounce, supported by expectations of U.S. rate cuts and ongoing concerns about the Middle East conflict following tensions between Israel and Hezbollah. Concerns about the Middle East and the potential shutdown of Libyan oil fields had driven oil prices up over 7% in the previous three sessions. However, prices dipped slightly on Tuesday. Market movements have been influenced by expectations of faster interest rate cuts in the U.S., after Federal Reserve chair Jerome Powell indicated readiness for rate cuts. The dollar index hovered near a one-year low at 100.83, while the euro and pound edged towards multi-month highs against the dollar. U.S. inflation data due on Friday could further impact market expectations regarding the timing of Fed actions. Investors also awaited Nvidia’s earnings report, with market analysts suggesting that the chipmaker’s forecast could have a significant impact on investor confidence in the AI sector. MSCI’s all-country index of stocks showed little change on the day at 829.75. Canada’s decision to impose tariffs on Chinese electric vehicles and steel and aluminum imports also influenced market sentiment. Oil prices saw a slight decrease, with Brent crude futures down 0.6% at $80.95 a barrel, and U.S. crude futures easing 0.7% to $76.89 a barrel.