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Oil Prices Add 2%, World Shares Lower 08/11 04:45
Shares were mixed in Asia, while oil prices gained more than 2% after
jumping the day before due to uncertainty over when the Strait of Hormuz may
reopen, getting the global flow of crude going again.
BANGKOK (AP) -- Shares were mixed in Asia, while oil prices gained more than
2% after jumping the day before due to uncertainty over when the Strait of
Hormuz may reopen, getting the global flow of crude going again.
U.S. futures edged lower.
Oil prices rose after U.S. President Donald Trump scoffed at demands from
Iran that the U.S. pay for devastation caused by five months of war as one
condition for reopening the strait.
Brent crude oil gained 2.4% to $89.80 a barrel, while U.S. benchmark crude
picked up 2.6% to $84.28 a barrel.
Brent surged 5% on Monday. It swung between $72 and $102 last month as hopes
rose and fell that the United States and Iran could reach an agreement that
would allow oil tankers to freely exit the Middle East again to deliver crude
worldwide.
In early European trading, the CAC 40 in Paris lost 0.2% to 8,708.85, while
Germany's DAX also fell 0.2%, to 26,272.81. In Britain, the FTSE 100 lost 0.2%
to 10,840.84.
The futures for the S&P 500 and the Dow Jones Industrial Average were 0.1%
lower.
Stocks wavered in Asia after the U.S. market edged away from its all-time
highs.
South Korea's Kospi gained 0.7% to 6,345.53 as shares in market heavyweight
Samsung Electronics jumped 4.1%. Memory chipmaker SK Hynix advanced 0.4%.
The wild swings of recent weeks, driven by waxing and waning hopes for a
lasting boost to corporate profits from artificial intelligence, have abated in
the past several days.
"Broadly, for the Korean memory chipmakers, the past year's chip mania could
well be over, even though Korean chipmakers will continue to benefit from the
massive AI build out," Ipek Ozkardeskaya, a senior analyst at Swissquote, said
in a commentary.
Markets in Tokyo were closed for a holiday.
In Hong Kong, the Hang Seng lost 1.1% to 25,652.82, while the Shanghai
Composite index gave up 0.8% to 3,934.09.
Australia's S&P/ASX 200 edged 0.2% higher to 9,250.60 after the Reserve Bank
of Australia opted to keep its benchmark interest rate unchanged at 4.35%.
Taiwan's Taiex rose 0.4% and the Sensex in India shed 0.5%.
On Monday, the S&P 500 slipped 0.1% from its record set on Friday. The Dow
dipped 0.1% and the Nasdaq composite fell 0.3%.
The recent rally powered by soaring profits for U.S. companies has slowed.
Reports are on track to show earnings per share leaped 50% in the spring from a
year earlier for companies in the S&P 500, according to FactSet. That would be
the best growth since five years ago, when the economy was roaring out of the
chasm created by the COVID-19 pandemic.
Berkshire Hathaway, famous for buying stocks at what it considers low
prices, gained 1.5%. It is one of the latest companies to deliver a stronger
profit for the last quarter than analysts expected.
Intel fell 4.1% after saying it may sell $15 billion of its stock. That
would dilute its shareholders' ownership stakes. Intel said it would likely use
the cash for investments in the huge spending related to AI technology.
The main event for Wall Street this week will likely be Wednesday's update
on U.S. inflation in July. Economists expect it slowed to 3.4% from 3.5% in
June, and that would relieve pressure on the Federal Reserve to raise interest
rates.
Higher rates would help keep a lid on inflation, but they would also slow
the economy by making it more expensive for U.S. households and companies to
borrow money. They would also undercut prices for stocks and other investments.
In other dealings early Tuesday, the U.S. dollar rose to 159.35 Japanese yen
from 159.30 yen. It has been inching higher despite a recent rate intervention
in the markets by Japan and the U.S. to help raise the yen's value against the
dollar.
The euro fell to $1.1539 from $1.1544.
The price of gold, often used as a hedge against risk in times of
uncertainty, added 0.3% to $4,434.20 an ounce.
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