European stock markets open higher.
European stock markets opened higher on Wednesday, following an advance in global shares as investors weighed uncertainty around the trajectory of U.S.-Iran peace talks and ongoing enthusiasm around artificial intelligence.
By 03:05 ET (07:05 GMT), the pan-European Stoxx 600 edged up by 0.2%, the Dax in Germany inched higher by 0.4%, the CAC 40 in France gained by 0.4%, and the FTSE 100 in the U.K. ticked up 0.1%.
Traders are keeping close tabs on negotiations to end a nearly three-month old war between the U.S. and Iran, which led to the effective closure of the Strait of Hormuz, driving up global prices and darkening the outlook for the global economy.
Bank of Japan Governor Kazuo Ueda flagged that an energy shock brought on by the conflict can persistent impacts, while European Central Bank board member Isabel Schnabel argued that an interest rate hike at the ECB’s June meeting is warranted even if a peace agreement is notched.
Gold prices tread water with US-Iran peace talks.
Gold prices moved little in Asian trade on Wednesday, with focus remaining squarely on continued peace negotiations between the U.S. and Iran.
The yellow traded in a tight trading range over the past 10 days as markets parsed mixed signals on the Iran war. Bullion prices had fallen on Tuesday after the U.S. military struck targets in Southern Iran.
Spot gold steadied at $4,505.93 an ounce by 01:24 ET (05:24 GMT), while gold futures rose 0.1% to $4,539.01/oz.
Gold pinned in $4,400-$4,600/oz trading range
Spot gold remained pinned in a range of $4,400/oz to $4,600/oz over the past 10 days.
Concerns over the inflationary impact of the Iran war were the biggest weight on gold, especially after a host of recent inflation readings pointed to an energy-driven spike in March and April.
This in turn fueled bets that global central banks will raise interest rates in the coming months to combat higher inflation– a scenario that bodes poorly for gold.
Dollar flat with US-Iran talks in focus.
The dollar moved little on Wednesday as focus remained on U.S.-Iran negotiations to end their war, while the Australian dollar weakened slightly following a softer-than-expected inflation print.
Traders kept to the sidelines ahead of hotly anticipated U.S. inflation and growth data due later in the week, while caution over the Iran war also weighed after renewed U.S. military action against the country.
Among other major currencies, the euro rose 0.1%, while the pound was flat.
The Japanese yen’s USD/JPY pair fell slightly after rising back above 159 yen, while the Chinese yuan’s USD/CNY pair remained close to a three-year low.
Dollar steadies with Iran talks, econ. data in focus
The dollar index and dollar index futures moved little in Asian trade, steadying after logging brief gains earlier in the week.
Focus remained on U.S.-Iran talks over ending the war and reopening the Strait of Hormuz. Media reports indicated that indirect negotiations were ongoing even after the U.S. military struck targets in Southern Iran earlier this week.
But it remained unclear just how close the two sides were to clinching a deal. U.S. officials had earlier struck an upbeat note on negotiations before offering a more cautious outlook this week.
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