Gold Hits Another Record: Global stock markets moved higher on Thursday as investors stayed hopeful about company earnings, especially ahead of Apple’s much-anticipated results. At the same time, gold prices hit another record, oil climbed on rising U.S.–Iran tensions, and currencies shifted as traders watched central banks closely.
Stocks Rise as Investors Focus on Company Earnings
European stocks mostly gained, helped by higher oil and metal prices. Markets in Britain, France, and Spain all finished higher, while Germany’s market slipped as investors reacted cautiously to economic data.
Investors are leaning heavily on company earnings to keep stock markets strong. This comes as hopes for early U.S. interest rate cuts have faded. On Wednesday, the U.S. Federal Reserve kept interest rates unchanged. Fed Chair Jerome Powell said the economy is improving, which is why the central bank decided to pause.
Many investors now believe the Fed may have already made its last rate cut for the year. Expectations for another cut by April dropped sharply, with June now seen as the earliest possible time.
In the U.S., Wall Street futures edged higher as attention turned to Apple’s earnings. Analysts expect Apple to beat forecasts, helped by strong demand for its latest iPhone. Microsoft shares fell after concerns about heavy spending, while Meta’s strong outlook lifted its stock and boosted confidence in tech earnings.
Gold and Oil Surge on Global Uncertainty
Gold prices continued their powerful rally, rising for the ninth session in a row and reaching a fresh record. Gold has now gained nearly 30% this month alone, as investors look for safety during uncertain times. Silver prices also jumped sharply.
Oil prices climbed to their highest level in four months after U.S. President Donald Trump warned Iran of possible military action if talks over nuclear weapons fail. Brent crude and U.S. oil both posted strong gains, pushing energy stocks higher.
Dollar Weakens as Currencies Shift Worldwide
Investors are becoming increasingly concerned about uncertainty surrounding US fiscal policies and a rising level of US government debt, which has led to a decline of the US dollar versus the majority of run major currencies (i.e. euro) while simultaneously increasing in value versus the Swiss Frank and Japanese Yen.
As a consequence of this decline in value of the US Dollar, several Eurozone officials have expressed concern about the potential implications of further declines in the US dollar on future interest rate decision-making by European Central Bank officials, given that the Euro is rapidly rising in value against the US dollar at this time.
In Asian equity markets there is mixed performance with South Korea continuing its good run during the month of November and Taiwan also performing well as their equity market is heavily positioned in technology companies benefitting from increased spending on Artificial Intelligence projects by corporations globally.
Will strong corporate earnings be sufficient to drive continued increases in all global equity markets or are investors underestimating the risks to investing that remain? Please comment below with your thoughts.
Read More: Microsoft’s Cloud Hits 50 Billion Dollars as Investors Suddenly Hit the Brakes
