World shares were mostly higher on Wednesday, tracking Wall Street's fresh records, while oil prices fell. The positive momentum in global markets came as investors remained optimistic about economic recovery prospects.
Market Performance
In Asia, Japan's benchmark Nikkei 225 gained 0.6% to close at 38,456.92. Australia's S&P/ASX 200 added 0.3% to 7,852.60. South Korea's Kospi rose 0.5% to 2,745.87. Hong Kong's Hang Seng index edged up 0.2% to 18,923.45, while the Shanghai Composite index was flat at 3,124.83.
European markets opened higher. Germany's DAX advanced 0.4%, France's CAC 40 gained 0.3%, and Britain's FTSE 100 rose 0.2%.
Wall Street Records
On Tuesday, the S&P 500 climbed 0.6% to a new all-time high of 5,321.41, surpassing its previous record set earlier this month. The Dow Jones Industrial Average rose 0.4% to 39,872.99, and the Nasdaq composite added 0.8% to 16,832.62.
Technology stocks led the gains, with Apple and Microsoft both hitting record highs. The rally was fueled by optimism over artificial intelligence and expectations that the Federal Reserve may cut interest rates later this year.
Oil Prices Decline
Benchmark U.S. crude oil fell 1.2% to $78.42 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, dropped 1.1% to $82.65 per barrel.
The decline in oil prices came amid concerns about demand growth, particularly from China, the world's largest oil importer. Traders are also monitoring the upcoming OPEC+ meeting for any production decisions.
Currency and Bond Markets
The U.S. dollar weakened against major currencies. The euro rose to $1.0850 from $1.0836, while the British pound strengthened to $1.2720 from $1.2705. The Japanese yen traded at 156.80 per dollar, down from 157.10.
In bond markets, the yield on the 10-year U.S. Treasury note fell to 4.45% from 4.48% late Tuesday, reflecting increased demand for safe-haven assets.
Economic Data and Outlook
Investors are awaiting key economic data later this week, including U.S. GDP figures and the Federal Reserve's preferred inflation gauge, the PCE price index. Strong corporate earnings and resilient consumer spending have supported markets, but concerns about inflation and interest rates persist.
In Canada, the Toronto Stock Exchange's S&P/TSX composite index rose 0.3% to 22,345.60, supported by gains in financial and energy stocks.
Overall, market sentiment remains cautiously optimistic, with investors balancing positive economic signals against geopolitical risks and monetary policy uncertainties.
