Futures edge higher.
U.S. stock futures tick higher as the benchmark S&P 500 index remains within striking distance of an all-time high. President Donald Trump is reportedly toying with the idea of naming a replacement to Federal Reserve Chair Jerome Powell later this year, as Trump’s frustration with the central bank’s cautious policy decisions grows. Elsewhere, BYD shares dip on a media report that the Chinese electric car giant’s production has decelerated, while Shell denies reports that it is considering a purchase of rival BP (NYSE:BP).
U.S. stock futures pointed higher on Thursday, with the S&P 500 hovering just below record high levels reached in February.
By 03:10 ET (07:10 GMT), the Dow futures contract had risen by 84 points, or 0.2%, S&P 500 futures had increased by 14 points, or 0.2%, and Nasdaq 100 futures had climbed by 74 points, or 0.3%.
The main averages on Wall Street ended in mixed fashion on Wednesday, pausing a two-day rally, as investors gauged a ceasefire between Israel and Iran and assessed testimony from Federal Reserve Chair Jerome Powell.
Asia FX bulls retreat after Middle East conflict.
Investors trimmed long positions in most Asian currencies as the conflict between Israel and Iran pushed oil prices higher and drove safe-haven flows into the U.S. dollar, a Reuters poll showed on Thursday.
Bullish bets on the South Korean won, the Taiwan dollar, the Indonesian rupiah and the Malaysian ringgit eased slightly from a fortnight ago, according to the poll of 11 respondents.
Asian currencies logged losses last week as a raging conflict between Iran and Israel, which settled into a delicate truce earlier this week, made investors risk averse and sent them seeking refuge in the dollar.
Rising oil prices added to the pressure as most emerging Asian economies, except Malaysia, import the bulk of their oil requirement and an increase in prices weighs on current account deficits.
European shares edge higher.
European shares edged higher on Thursday, aided by signs that the Israel-Iran ceasefire appeared to be holding, while investors braced for the July 9 deadline for trade deals with the United States.
The pan-European STOXX 600 index was up 0.2% at 538.27 points, as of 0839 GMT. Other regional indexes traded higher.
Investors have been soothed by a ceasefire between Israel-Iran. U.S. President Donald Trump said on Wednesday he would likely seek a commitment from Iran to end its nuclear ambitions at talks next week.
Attention has now shifted to the upcoming July 9 U.S. tariff pause deadline. With limited progress on trade deals, except for a U.S.-UK agreement, the European Union is scrambling to secure its own deals with Washington.
On Thursday, EU leaders are expected to tell the European Commission whether they prefer a quick trade deal with the U.S., even if it means conceding better terms to Washington, or to escalate the dispute in hopes of securing a more favourable outcome.
“We haven’t heard much about a deal between U.S. and Europe and as we approach closer to the tariff deadline, it’s becoming more of a risk factor for Europe,” said Anthi Tsouvali, multi-asset strategist at UBS Global Wealth Management.
The bloc is already facing tariffs including 50% on steel and aluminium and 25% for cars and car parts. Trump has threatened that tariffs could rise to 50% without an agreement.
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