Global stocks were mixed on Thursday as oil prices slid again on growing optimism for a U.S.-Iran peace deal, even as the fate of the critical Strait of Hormuz remains unresolved.
On Wall Street, the S&P 500 was little changed, the Nasdaq Composite added 0.57%, and the Dow dipped 0.36%. Europe's STOXX 600 fell 0.8%, while MSCI's Asia-Pacific index hit a fresh all-time high, up 1.75%. Japan's Nikkei crossed 62,000 for the first time.
“The momentum is going in a good direction,” said Samy Chaar, chief economist at Lombard Odier. He noted that lower oil prices relieve pressure on bond yields, which is positive for equities.
Brent crude dropped 4.6% to $96.62 a barrel, following an 8% plunge on Wednesday. Despite the decline, oil remains about 40% above levels before the conflict began. The 10-year Treasury yield slipped to 4.338%.
U.S. earnings continue to impress. “U.S. earnings confirm a broad-based profit boom,” said Manish Kabra of Societe Generale, citing record EPS beats and all-time-high margins. S&P 500 companies are on track for their strongest profit growth in over four years.
Investors are now focused on Friday’s U.S. non-farm payrolls report, with economists expecting 62,000 new jobs in April.
In currency markets, the euro edged up to $1.1771, and sterling was slightly higher at $1.3616. The dollar index was a touch lower at 97.88. The yen remained under scrutiny after recent spikes sparked speculation of intervention by Tokyo.