World shares were mostly lower on Thursday as investors awaited developments in the Middle East, causing U.S. stocks to stall. Germany's DAX dropped 0.7% to 19,026.36, while the CAC 40 in Paris lost 0.8% to 7,514.49. In contrast, London's FTSE 100 rose 0.2% to 8,307.45.
The futures for the S&P 500 and the Dow Jones Industrial Average were down 0.4%. The U.S. dollar strengthened against the Japanese yen due to indications that an interest rate hike was not imminent, benefiting major export manufacturers in Japan.
Tokyo's Nikkei 225 index surged 2% to 38,552.06, with the dollar trading at 146.81 Japanese yen. The yen had initially gained value after Shigeru Ishiba took office as Japan's new prime minister and expressed support for the central bank's recent interest rate moves. However, a meeting between Ishiba and the Bank of Japan Governor Kazuo Ueda suggested that further rate hikes were not suitable at the moment, leading to a decline in the yen's value.
In Asia, Hong Kong's Hang Seng fell 1.5% as investors locked in profits following a significant gain the previous day. Oil prices rose amid uncertainty over Israel's response to a missile attack from Iran, with U.S. benchmark crude oil reaching $70.64 per barrel and Brent crude at $74.43 per barrel.
On Wall Street, benchmarks closed marginally higher on Wednesday amidst Middle East conflict concerns. The S&P 500, Dow Jones Industrial Average, and Nasdaq composite all saw slight gains. Treasury yields rose following a report indicating strong hiring by U.S. employers, hinting at a positive outlook for the upcoming job market report.
The Federal Reserve's decision to maintain high-interest rates to combat inflation has been a focal point for investors. The belief that the U.S. economy will continue to grow, coupled with anticipated interest rate cuts, has kept stocks near record levels. The euro also experienced a slight decline against the dollar, dropping to $1.1041 from $1.1047.
