Anticipation ahead of impending US inflation details
Market Update: Global Stocks Mixed, Tech Tensions Persist
In today's market roundup, the FTSE 100 in London closed at 9,129.71, up 0.4 percent, while the Shanghai Composite closed at 3,647.55, up 0.3 percent. The Nasdaq Composite closed at 21,385.40, down 0.3 percent, and the S&P 500 closed at 6,373.45, also down 0.3 percent. The Dow Jones Industrial Average closed at 43,975.09 points, down 0.5 percent.
In the tech sector, Nvidia and AMD have agreed to pay the U.S. government 15 percent of their revenue from sales of certain artificial intelligence chips to China. This follows a deal brokered during the Trump administration, where the Commerce Department began granting licenses for these chip sales after meeting with Nvidia's CEO, Jensen Huang. This revenue-sharing mechanism can be seen as a form of a "political tariff," effectively allowing these companies to sell to China while the U.S. government extracts a cut, amid heightened U.S.-China tech tensions and trade restrictions.
Meanwhile, the Pound/dollar exchange rate was down at $1.3435, and the Euro/dollar exchange rate was down at $1.1617. West Texas Intermediate was up 0.1 percent at $63.96 per barrel, and Brent North Sea Crude was up 0.1 percent at $66.63 per barrel. Gold futures retreated after hitting a record high on Friday.
In currency markets, the Dollar/yen exchange rate was up at 148.12 yen, and the Euro/pound exchange rate was down at 86.47 pence. The CAC 40 in Paris closed at 7,698.52, down 0.6 percent, and the DAX in Frankfurt closed at 24,081.34, down 0.3 percent.
The Hang Seng Index in Hong Kong closed at 24,906.81, up 0.2 percent, and stocks in Hong Kong and Shanghai rose on Monday. However, shares in Danish renewable energy firm Orsted plunged 30 percent in Copenhagen.
In other news, Trump stated that gold would not face additional tariffs, and he has signed an order to delay the reimposition of steeper tariffs on Chinese products by another 90 days. A high-stakes summit between Trump and Russian President Vladimir Putin is scheduled for Friday in Alaska.
Investors are awaiting new US consumer price index figures and have ramped up their bets that the Fed will lower borrowing costs at its next policy meeting in September. The Nikkei 225 in Tokyo was closed for a holiday.
The White House did not respond to queries on the matter. Investors are keeping a close eye on these developments as they continue to shape the global market landscape.
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