Global markets-Oil prices rally, US data dents chances of Fed rate hike

European shares finished lower on Friday and snapped a four-week winning streak, as rising crude prices and renewed geopolitical tensions offset support from a resilient earnings season. MSCI's gauge of stocks across the globe .MIWD00000PUS fell 1.08 points, or 0.09%, to 1,159.72. MSCI's broadest index of Asia-Pacific shares outside Japan .MISX00000PUS closed 0.29% higher at 1,640.08. "The markets round out the week on a positive note, with relatively thin event risk on the economic and corporate calendar. But of course, it’s a Friday, and the typical pattern has been for geopolitical risks, or at least bombastic rhetoric, to pick up between the U.S. and Iran going into the weekend," Capital.com strategist Kyle Rodda said. "Currently, the geopolitical uncertainty remains the only major macro roadblock to a market experiencing strong tailwinds from earnings and the monetary policy outlook." Brent crude futures LCOc1 rose to $88.33 per barrel, up 1.45% on the day, and U.S. oil prices CLc1 rose 1.26% to $82.27. John Sidawi, senior portfolio manager for fixed income at Federated Hermes, said a puzzling feature of markets in recent months has been the growing disconnect between geopolitical uncertainty and asset price volatility. "For now, markets appear willing to tolerate a significant amount of uncertainty without demanding higher risk premiums. However, this equilibrium is unlikely to be permanent," Sidawi said. "A meaningful escalation in conflict or a clear path toward resolution could finally force investors off the sidelines, potentially triggering a much larger volatility response than current market pricing implies." NEW YORK/LONDON, Aug. 14 (Reuters) - U.S. and European shares fell on Friday and oil prices gained as markets monitored tense U.S.-Iran talks and digested new data that dented expectations for a Federal Reserve rate hike next month. Faltering talks to end the Iran war left oil and gas prices poised for sizeable weekly gains. The U.S. threatened to ramp up economic pressure on Iran, including extending a naval blockade. U.S. consumer sentiment deteriorated in early August amid the rising cost of living because of the Middle East conflict, a survey showed on Friday. The U.S. dollar and yields on U.S. Treasuries fell on a surprise drop in U.S. retail sales. The data further reduced expectations of a Federal Reserve rate hike at next month's meeting. The weaker dollar supported gold prices. Tech stocks, which had propelled the S&P 500 to a record high on Thursday, weighed on Wall Street. The Dow Jones Industrial Average .DJI fell 73.41 points, or 0.14%, to 53,766.58, the S&P 500 .SPX fell 14.93 points, or 0.19%, to 7,784.06, and the Nasdaq Composite .IXIC fell 105.11 points, or 0.39%, to 26,697.93. "There is some profit taking, but I expect that most institutional investors remain fairly optimistic," said Peter Andersen, founder of Andersen Capital Management. Both the S&P 500 and the Nasdaq were still on track for their third consecutive weekly gain. In currencies, the yen JPY= strengthened 0.08% against the greenback to 159.37 per dollar, after a Reuters report that the Bank of Japan could raise rates as soon as September, according to three sources familiar with policymakers' thinking. However, it is still within sight of the 160 level that traders think could trigger another bout of yen buying from Tokyo, after joint intervention with the U.S. last month failed to support the Japanese currency. The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.25% to 99.67, with the euro EUR= up 0.32% at $1.1564. In commodities, spot gold XAU= rose 0.69% to $4,380.03 an ounce. U.S. gold futures GCcv1 settled 0.4% higher at $4,437.30.

Global markets-Oil prices rally, US data dents chances of Fed rate hike

Geopolitical risk keeps investors on edge

U.S. and European shares fall as oil prices gain

Yen strengthens, dollar and Treasury yields fall

Related News

Buzz-U.S. Stocks on the Move-Sun Communities, Cisco Systems, Paysafe

Pontegadea agrees to buy Parpública’s 13.7% stake in REN

KonaTel Receives Notice Of FCC Alleged Lifeline Program Violations At IM Telecom

Luigi Mangione admits killing insurance CEO, pleads guilty in federal case

Tiger Global Dissolves Stake In Netflix, Cuts In Alphabet, Raises In Intel