Global Markets Mostly Higher While Dollar Remains Under Pressure

By Dow Jones Newswires Staff

U.S. stock futures and global equities markets were mostly higher Thursday, while the dollar continued to ease. Nvidia's shares were down in aftermarket trading after a miss in its data-center segment took the gloss off an otherwise strong second-quarter earnings report.

Meanwhile, the dollar remains under pressure amid concerns over the independence of government agencies. Ahead on Thursday, the second estimate of U.S. GDP data for the second quarter as well as weekly jobless claims are due, while Dell reports earnings.

• U.S. futures for the S&P 500 were up 0.1% after closing Wednesday's session at a new record high. Futures for the Dow Jones Industrial Average climbed 0.3% early in the European day while Nasdaq stock futures were just a touch lower.
• In Europe, the pan-European Stoxx Europe 600 was up 0.3% shortly after the open. France's CAC 40 increased 0.7% as markets there stabilized after French Prime Minister Francois Bayrou on Monday called for a confidence vote on Sept. 8. Still, French government bond yield spreads are likely to stay elevated if not widen out more, ING rates strategists said. The 10-year French OAT-German Bund yield spread rose to 82 basis points on Wednesday, the highest level since January. European semiconductor stocks were mostly up in early trade.
• Stocks in Asia were mixed. Indian stocks opened lower on the first day of trading, with manufacturing and information-technology stocks leading the falls, after the Trump administration's 50% tariff kicked in. Still, with two hours of trading left, the index clawed back some of the losses. India's tax reform plan could offset the economic hit from U.S. tariffs, said BMI analysts.

Meanwhile, Japan's Nikkei 225 index closed up 0.7%, while the Japanese finance ministry's auction of two-year government bonds drew the weakest demand since 2009. Hong Kong's Hang Seng fell 0.5% and South Korea's Kospi closed up 0.3% after the central bank held rates steady and lifted its growth forecast.

• U.S. Treasury yields were trading marginally lower ahead of key U.S. indicators Thursday and Friday. The U.S. Treasury's $44 billion auction of seven-year notes will be watched closely after Wednesday's five-year Treasury auction which was "soft," according to Commerzbank Research. The two-year Treasury yield was last down 0.4 basis point to 3.618%, while the 10-year yield was down 1.3 basis points at 4.224%, according to Tradeweb data.
• The dollar continued to fall as concerns persist about the Federal Reserve's independence. President Trump on Wednesday also fired Robert Primus, a board member of the railway regulator, fuelling fears that Trump is trying to control independent government agencies.

Elsewhere, Treasury Secretary Scott Bessent told Fox Business that a decision on the next Fed Chair should be known in the fall. He also repeated his call for an internal review of the Fed. The DXY dollar index against a basket of currencies was recently down 0.1% to 98.119.

• In commodities, crude oil futures eased with investors shifting focus from Russian supply risks to the prospect of a global supply glut as summer comes to an end. Brent crude and WTI were both down 0.3% to $67.27 and $63.97 a barrel, respectively. The benchmarks settled more than 1% higher in the previous session after a larger-than-expected draw in U.S. crude stockpiles. Gold futures were flat.

Write to Barcelona Editors at barcelonaeditors@dowjones.com