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US dollar rises, gold retreats

The US dollar climbed to multi-week highs on Thursday, prompting profit-taking in gold as geopolitical tensions eased following a ceasefire agreement in the Middle East. US equities finished lower after a string of record sessions, with investors adopting a cautious stance amid concerns of overheating in the market, while Asia-Pacific markets traded mostly weaker - though SK Hynix and Samsung Electronics soared to all-time highs on AI optimism. In Europe, stocks slipped as Ferrari plunged after a disappointing outlook and banks struggled, while German export data revealed persistent headwinds for the region. The US government shutdown extended into a ninth day, leaving markets with less macroeconomic clarity as key economic data releases remain postponed.

  • Data
  • Autore Shane Strowmatt, Senior Investment Writer
  • Tempo di lettura 5 minuto

US dollar bills
© shutterstock

The US dollar continued its upward momentum on Thursday, reaching its highest level in over four weeks against both the Swiss franc and the euro. The euro came under pressure from weaker-than-expected German export data and ongoing political uncertainty in France. The US Dollar Index was trading at 99.3, having made gains each day this week. Meanwhile, the dollar's gains pressured gold, which fell back below USD 4000 per ounce from a record high near USD 4060 earlier in the week. Investors took profits in the yellow metal following the announcement of a US-brokered ceasefire between Israel and Hamas, which eased safe haven demand. The precious metal will still likely post an eighth consecutive week of gains, as ongoing US political uncertainty and expectations of Federal Reserve easing continued to support prices. Other precious metals also pulled back, with platinum falling from a near 13-year high and silver stabilising after reaching a record level on Thursday.

SK Hynix and Samsung reach record levels

Shares of South Korean semiconductor producers SK Hynix and Samsung Electronics surged to all-time highs on Friday, rising 6.1% and nearly 5.4% respectively, buoyed by optimism around artificial intelligence deals, including a recent partnership between OpenAI and Advanced Micro Devices. The broader Asia-Pacific equity markets traded mostly lower, with the Nikkei 225 falling 1% and the Hang Seng Index losing 1.4%, reflecting investor caution in assessing global economic conditions. Mainland China’s CSI 300 fell 1.5% and Australia’s S&P/ASX 200 was marginally lower. Notably, South Korea’s Kospi index gained 1.4% following a national holiday, in contrast to declines seen in other regional markets.

US equities retreat from record highs

Major US stock indices edged lower on Thursday following recent record gains, as investors exercised caution amid concerns of an overheated market. The S&P 500 fell 0.28% to 6735.11 points, the Dow Jones Industrial shed 0.52% to 46,358.42 points, while the Nasdaq 100 declined 0.15%. Despite Nvidia reaching a new record and gaining nearly 2% after news of major export approvals and raised analyst targets.

European shares slip as Ferrari plunges

Euro-area equities retreated slightly on Thursday, with the EuroStoxx 50 losing 0.4%, as sentiment was dampened by a sharp drop in Ferrari shares and weakness among banks following news from HSBC. Ferrari declined over 15% after its long-term earnings outlook fell short of investor hopes, while HSBC slid more than 5% after announcing plans to acquire minority shareholders in Hang Seng Bank and suspending share buybacks. The automotive sector was notably weak across Europe, posting a nearly 5% decline, and Michelin also lost almost 4% amid concerns over its outlook. France’s CAC 40 declined 0.2% and Switzerland’s SMI lost 0.3%, while Germany’s DAX bucked the trend, rising slightly.

German exports fall in August

German exports declined by 0.5% in August compared with July, reaching EUR 129.7 billion, while imports dropped by 1.3% to EUR 112.5 billion, according to data released on Thursday. Compared to August of last year, exports were 0.7% lower and imports rose by 3.5%, resulting in a foreign trade surplus of EUR 17.2 billion, down from EUR 21.9 billion a year earlier. Trade with EU countries weakened on a monthly basis, with exports to the United States dropping for the fifth successive month and plunging 20.1% compared with August of last year. In contrast, exports to China rose by 5.4% month-on-month, while imports from China fell by 4.5%.

Corporate and economic calendar

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: SECO Swiss consumer sentiment (09:00), Italian industrial production (10:00), US nonfarm payrolls (14:30), Canadian unemployment rate (14:30) and University of Michigan Consumer Sentiment Index (16:00).

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Editor: Alessandro Fezzi
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