World stock markets rebound, oil prices steady as global anxiety eases

Global stock markets and oil prices gained on Thursday as ongoing tension eased between US and Iran. Indices in London and Frankfurt rose after Tokyo closed more than 2% higher. Shanghai and Hong Kong also advanced, while Wall Street futures pointed to gains on the open.

Markets had largely fallen on Wednesday after Iran’s move.

The lack of casualties “gave the markets more confidence,” said analyst Stephen Innes of AxiTrader. In Europe, London’s FTSE 100 gained 0.5% to 7,612 and Frankfurt’s DAX rose 1.1% to 13,467. France’s CAC 40 added 0.2% to 6,045.

On Wall Street, futures for the benchmark S&P 500 and Dow Jones Industrial Average were up nearly 0.3%.

Asian stock markets surged on Thursday.Tokyo’s benchmark gained nearly 2%. Shanghai, Hong Kong and Southeast Asia markets also advanced.

Tokyo’s Nikkei 225 rose 1.94% to 23,655.64 and Hong Kong’s Hang Seng added 1% to 28,310.10. The Shanghai Composite Index was 0.5% higher at 3,081.36. Seoul’s Kospi rose 1.95% to 2,175.48 and Sydney’s S&P-ASX 200 added 0.6% to 6,859.40. Taiwan and Southeast Asian markets also advanced while New Zealand was unchanged.

On Wall Street, the benchmark S&P 500 index rose 0.5% to 3,253.05. The Dow Jones Industrial Average advanced 0.6% to 28,745.09. The Nasdaq composite rose 0.7% to a record 9,129.24. Trump said he would add economic sanctions on Iran but the United States is “ready to embrace peace with all who seek it.”

Oil prices rebounded Thursday after first surging on news of the Iranian attack and then falling back once tensions appeared to be easing.

Benchmark US crude gained 48 cents to $60.09 per barrel in electronic trading on the New York Mercantile Exchange. On Wednesday, the contract fell $3.09 to settle at $59.61. It traded as high as $65.65 following the missile attack.

Brent crude, used to price international oils, advanced 44 cents to $65.88 per barrel in London. It fell $2.83 the previous session to $65.44.

Gold had a similar whipsaw day. It climbed as high as $1,604.20 per ounce before settling at $1,560.10.

In currency trading, the dollar gained to 109.20 yen from Wednesday’s 109.08 yen. The euro advanced to $1.1115 from $1.1105.ump said he would add economic sanctions on Iran but the United States is “ready to embrace peace with all who seek it.”

Oil prices rebounded on Thursday after first surging on news of the Iranian attack and then falling back once tensions appeared to be easing.

Benchmark US crude gained 43 cents to $60.04 per barrel in electronic trading on the New York Mercantile Exchange. On Wednesday, the contract fell $3.09 to settle at $59.61. It traded as high as $65.65 following the missile attack.

Brent crude, used to price international oils, advanced 24 cents to $65.68 per barrel in London. It fell $2.83 the previous session to $65.44.

Gold had a similar whipsaw day. It climbed as high as $1,604.20 per ounce to a seven-year high before falling back. On Thursday it was down $8.20 at $1,552.

In currency trading, the dollar gained to 109.36 yen from Wednesday’s 109.08 yen. The euro advanced to $1.1114 from $1.1105.

Gold prices inched up on Thursday as investors preferred to stay put with the safe-haven metal even though the chances of an escalation in U.S.-Iran conflict waned after the two sides softened their stance.     Spot gold  was up 0.1% at $1,557.34 per ounce by 0526 GMT. Prices hit their highest since March 2013 at $1,610.90 on Wednesday. US gold futures  were flat at $1,559.80.  Following the signal that both sides are looking to defuse the crisis “there is a degree of relief in markets,” said Ilya Spivak, a senior currency strategist at DailyFx.     “We did not see an immediate escalation, although it would not be accurate to say that it cannot happen, there is that risk.”  

Gold, considered a safe investment in times of political and economic uncertainty, had risen as much as 2.4% on Wednesday and surpassed the key $1,600 level after Iran’s retaliatory attacks.     Limiting gold’s advance, Asian stocks erased their losses on the easing concerns of conflict. “...Gold Bulls are still buying at the critical support level as back burner influences around trade and U.S. data uncertainty continues to argue for gold in the portfolio even as oil prices sell-off, and U.S. equities are back near record highs.”

Investors also took stock of data from China where consumer inflation steadied while factory-gate prices fell at a slower pace in December.  Holdings of the world’s largest gold-backed exchange-traded fund SPDR Gold Trust fell 1.05% to 886.81 tonnes on Wednesday. Among other precious metals, palladium  hit a record peak of $2,149.50 an ounce on sustained supply concerns, and was last up 1.8% to $2,142.51 an ounce.     Silver was flat at $18.08 per ounce, after hitting its highest since September at $18.85 on Wednesday, while platinum rose 0.2% to $955.61.   

Agencies