Coin Press - Equities struggle but oil advances

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Equities struggle but oil advances
Equities struggle but oil advances / Photo: ANGELA WEISS - AFP

Equities struggle but oil advances

US and European stocks turned in mixed performances on Thursday, while oil bounced higher on Chinese demand expectations.

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Wall Street opened higher, with chip company Nvidia helping reassure investors about the outlook for the tech industry following a slew of poor earnings and forecasts.

While the company reported lower quarterly profits, its first-quarter revenue outlook topped estimates and executives expressed confidence about the growth of artificial intelligence technology.

Nvidia's shares jumped around 12 percent and the tech-heavy Nasdaq Composite index climbed more than one percent at the open of trading.

But US indices saw their gains evaporate and turn lower in late morning trading.

US stocks have been on the back foot since the middle of last week following inflation data that revived worries about additional interest rate hikes.

Minutes from a Federal Reserve policy meeting on Wednesday indicated US interest rates would keep rising for longer than investors had been expecting.

A blockbuster US jobs report and sticky inflation data this month have dealt a hammer blow to earlier expectations that the Fed could soon pause its monetary tightening campaign or even cut borrowing costs before year's end.

US unemployment claims came in lower than anticipated Thursday, which "will contribute to expectations for another strong gain in nonfarm payrolls and the Fed sticking to its tightening ways", according to Briefing.com analyst Patrick J. O'Hare.

Several Fed officials had lined up to warn traders they were too optimistic and that with the labour market still strong, rates would need to keep rising until it had weakened and prices were under control.

Expectations of higher for longer US rate hikes helped the dollar gain traction against major rivals.

In Europe, both Frankfurt and Paris stocks closed higher, but London's benchmark FTSE 100 index dipped as several stocks went past dividend dates.

London's loss came despite shares in Rolls-Royce soaring 23 percent after the maker of aircraft engines promised greater efficiency under its new chief executive Tufan Erginbilgic.

Oil prices bounced higher after several days of sliding.

"Crude oil prices have rebounded... as China demand expectations contrive to help keep a floor under prices," said CMC Markets analyst Michael Hewson.

- Key figures around 1630 GMT -

New York - Dow: DOWN 0.3 percent at 32,951.60 points

London - FTSE 100: DOWN 0.3 percent at 7,907.72 (close)

Frankfurt - DAX: UP 0.5 percent at 15,475.69 (close)

Paris - CAC 40: UP 0.3 percent at 7,317.43 (close)

EURO STOXX 50: UP 0.4 percent at 4,258.16 (close)

Hong Kong - Hang Seng Index: DOWN 0.4 percent at 20,351.35 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,287.48 (close)

Tokyo - Nikkei 225: Closed for a holiday

Euro/dollar: DOWN at $1.0595 from $1.0609 on Wednesday

Pound/dollar: DOWN at $1.2021 from $1.2046

Euro/pound: UP at 88.12 pence from 87.99 pence

Dollar/yen: UP at 134.79 yen from 134.71 yen

Brent North Sea crude: UP 1.7 percent at $81.99 per barrel

West Texas Intermediate: UP 1.8 percent at $75.26 per barrel

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St.Ch.Baker--CPN