By Oluwakemi Kindness
European stock markets fell on Wednesday as rising oil prices and renewed tensions in the Middle East weighed on investor sentiment.
Markets remained focused on the conflict involving the United States and Iran, after fresh US strikes and the reimposition of a naval blockade pushed oil prices higher.
Asian markets, however, recorded gains as technology stocks recovered following better-than-expected US inflation data and strong corporate earnings.
Swissquote analyst, Ipek Ozkardeskaya said the difference in market performance was largely driven by technology stocks, which have continued to outperform.
Investor confidence in Asia was also boosted by positive Wall Street earnings reports and US President Donald Trump’s decision to abandon plans for a 20 per cent levy on cargo passing through the Strait of Hormuz.
South Korea’s stock market led the regional recovery, rising as much as 7 per cent before easing, helped by an 8.8 per cent jump in chipmaker SK hynix shares.
Dutch semiconductor equipment giant ASML also gained after raising its sales outlook, citing strong demand linked to artificial intelligence technology.
China’s Shanghai market moved lower after data showed the economy grew slower than expected in the second quarter.
Banking giants including JPMorgan Chase, Citigroup, Bank of America, Goldman Sachs and Wells Fargo reported stronger quarterly profits, supporting market sentiment.
Meanwhile, shares of IBM dropped sharply after investors reacted negatively to its latest earnings report.
The US dollar traded mixed against major currencies as expectations of an immediate interest rate hike eased, although Federal Reserve officials warned that inflation concerns remain.
