Stocks Eye Strong Quarterly Finish as Oil Extends Decline – Europe Market Wrap
US equity futures edged higher on the final day of a quarter that is on track to be the S&P 500’s strongest in six years. The dollar strengthened as the yen fell to its weakest level since 1986.
S&P 500 futures rose 0.2%, pointing to a steady finish for the benchmark, which has climbed 14% since the start of April. European stocks advanced, led by gains in Abivax after a clinical trial update eased investor concerns. Chipmakers also lifted Asian markets.
Global equities continue to build on recent gains as investors prepare for another earnings season that analysts expect will be fueled by ongoing investment in artificial intelligence. A resilient economic backdrop is also supporting sentiment, with lower oil prices helping to ease concerns about inflation.
The yen extended its recent slide, weakening beyond 162 per dollar, a level likely to heighten speculation over possible intervention by Japanese authorities. Finance Minister Satsuki Katayama said Japan stands ready to respond to developments in the foreign-exchange market at any time.
Elsewhere, Brent crude slipped 0.3% to around $73 a barrel as shipments through the Strait of Hormuz increased. Analysts at Morgan Stanley lowered their oil price forecasts for the second time in about two weeks, citing a faster-than-expected recovery in supply alongside strong US production and weak demand from China, which could lead to an oversupplied market.
Despite the decline in oil prices, investors remain focused on peace talks scheduled for Tuesday after Iran reaffirmed its intention to control maritime traffic through the Strait of Hormuz. Energy prices remain a key factor in the inflation outlook, with the Federal Reserve expected to raise interest rates as early as September.
