Nikkei nears record as oil and gold retreat

Nikkei futures in Chicago traded close to record highs, with the cash index expected to test its peak this week, as investors reacted to reports that Nvidia and AMD agreed to pay the US government 15% of China AI chip revenues for export licences. Spot gold fell to $3,378 per ounce and oil prices eased, with Brent at $65.97 and WTI at $63.19, ahead of US-Russia talks on Ukraine scheduled for Friday. Currency moves saw the dollar index at 98.07, the pound at $1.346 and the offshore yuan at 7.184.

Equities

The FTSE 100 closed 0.06% lower on Friday, trimming gains from earlier in the week but still ending up 0.3% over the five-day period. Mining shares provided support, with Glencore rising 2.8% and Antofagasta climbing 2.5%, helped by stronger copper prices. The FTSE 250 gained 0.1% on the day and 1.2% for the week, led by Dowlais, which rose 5.7% on Friday in the automobiles and parts sector. Georgia’s TBC Bank fell 5.1% after reporting its half-year results, pulling back earlier in the session.

In the United States, major indices ended Friday higher, with the Nasdaq closing at a record high for the second day in a row. The Nasdaq rose 0.98% to 21,450.02, the S&P 500 gained 0.78% to 6,389.45 and the Dow Jones Industrial Average was up 0.47% to 44,175.61. For the week, the Nasdaq advanced 3.9%, the S&P 500 added 2.4% and the Dow increased 1.3%.

Apple shares rose 4.2% on Friday, capping a 13.3% gain for the week — its strongest weekly performance since 2020. The move followed an announcement from President Donald Trump on Wednesday that Apple would invest an additional $100 billion in the United States, bringing its total planned U.S. commitment to $600 billion over four years.

Gilead Sciences gained 8.3% on Friday after raising its full-year outlook, supporting the S&P 500 healthcare sector. Expedia climbed 4.1% after the travel booking company increased its annual forecast for gross bookings and revenue growth.

Technology and communication services led the S&P 500’s gains on Friday, with both sector indexes closing at record highs. In total, more than 450 S&P 500 companies have now reported second-quarter results, with estimated earnings growth for the period standing at 13.2% as of Friday, compared with 5.8% on 1 July, according to LSEG.

Forex & Commodities

The US dollar fell on Monday morning, with the dollar index at 98.07. Against the yen it traded at 147.46, while the pound rose to $1.346. The offshore yuan moved between gains and losses, standing at 7.184 to the dollar. The Australian dollar was steady at $0.6526 ahead of Tuesday’s Reserve Bank of Australia meeting, where a 25-basis-point cut to 3.60% is widely expected. The New Zealand dollar was little changed at $0.5955.

Crypto prices rose sharply, with bitcoin up at $121,909 in morning trade, approaching its record high from July, following last week’s US executive order allowing cryptocurrencies in retirement accounts. Ether stood at $4,307 after earlier touching its highest level since December 2021.

Spot gold fell on Monday morning to $3,378 per ounce after reaching its highest since late July on Friday. Silver was at $38.13, platinum at $1,318 and palladium at $1,127. The moves came ahead of Tuesday’s US consumer price data, with analysts expecting the core measure to rise 0.3% month-on-month, taking the annual rate to 3.0%.

Oil prices also fell in Asian trade, extending last week’s sharp declines. Brent crude was at $65.97 per barrel and West Texas Intermediate at $63.19. The weakness followed comments from President Donald Trump confirming a meeting with Russian President Vladimir Putin on 15 August in Alaska to discuss ending the war in Ukraine, raising prospects of sanctions changes. India has stepped up purchases of US crude, with August loadings estimated at 5 million barrels and further volumes possible depending on tenders.