Journal du Club des Cordeliers - Stock markets strike records despite geopolitical unrest

Data showing US producer prices unexpectedly fell in August helped push the S&P 500 and Nasdaq Composite into record territory as trading got underway in New York.

The US producer price index (PPI) dipped 0.1 percent on a month-on-month basis, according to Department of Labor data -- when analysts had expected a 0.3-percent increase.

Briefing.com analyst Patrick O'Hare said the data will ease the market's angst about the effect of tariffs fuelling inflation in consumer prices.

"This report will keep the market locked on its view that there will be at least 75 basis points of rate cuts by the Fed before the end of the year," he said.

Wall Street had notched fresh highs Tuesday as markets digested weak US jobs data that added to expectations that the Federal Reserve will lower US interest rates at their meeting next week.

Investors also see it cutting rates at the other two meetings remaining in 2025.

The dollar drifted lower against its main rival currencies.

Wall Street also got a boost from a 35-percent jump in Oracle shares after the software company projected huge revenue growth based on contracts connected to artificial intelligence.

Tokyo's stock market ended at an all-time high, as did Seoul where South Korean traders were hopeful the government will not implement plans to lower the capital gains tax threshold for stocks.

In Europe, the Paris CAC 40 gained in early afternoon trading as France welcomed a new prime minister.

President Emmanuel Macron on Tuesday appointed Sebastien Lecornu as prime minister, one day after his predecessor Francois Bayrou lost a confidence vote in parliament over planned austerity measures to reduce France's debt.

"The failure of... (the) austerity push signals that compromise will be needed, but for now, investors are focusing on the near-term boost to sentiment rather than the longer-term fiscal risks," noted Joshua Mahony, chief market analyst at Scope Markets.

Kathleen Brooks, research director at XTB trading group, said "financial markets are once again defying gravity as we move through September, which is seasonally a weak month for stocks".

Traders appeared also to look past Russia's overnight violation of Polish airspace.

Gains for oil prices were relatively modest, while gas futures were unmoved after Israel's strikes Tuesday against Hamas in gas-rich Qatar.

Gold, a traditional safe haven investment, traded close to its recent record highs.

Elsewhere, Jakarta's stock market clawed back a large part of Tuesday's heavy losses that came after President Prabowo Subianto removed finance minister Sri Mulyani Indrawati following deadly anti-government protests.

While London was up overall, gains were capped slightly by a 10-percent plunge in the share price of Primark owner ABF following a poorly-received trading update regarding its clothing and food businesses.

- Key figures at around 1330 GMT -

New York - Dow: DOWN 0.1 percent at 45,645.12 points

New York - S&P 500: UP 0.4 percent at 6,538.52

New York - Nasdaq Composite: UP 0.4 percent at 21,969.12

London - FTSE 100: FLAT at 9,241.63

Paris - CAC 40: UP 0.3 percent at 7,769.68

Frankfurt - DAX: FLAT at 23,712.48

Tokyo - Nikkei 225: UP 0.9 percent at 43,837.67 (close)

Hong Kong - Hang Seng Index: UP 1.0 percent at 26,200.26 (close)

Shanghai - Composite: UP 0.1 percent at 3,812.22 (close)

Euro/dollar: UP at $1.1718 from $1.1707 on Tuesday

Pound/dollar: UP at $1.3546 from $1.3527

Dollar/yen: DOWN at 147.29 from 147.42 yen

Euro/pound: DOWN at 86.51 pence from 86.57 pence

Brent North Sea Crude: UP 1.0 percent at $67.02 per barrel

West Texas Intermediate: UP 1.0 percent at $63.23 per barrel

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J.Petit--JdCdC