Turkey, Iraq, Qatar, And UAE Signed A Transportation Agreement -

Turkey, Iraq, Qatar, And UAE Signed A Transportation Agreement

Apr 23, 2024Jeremy ParkinsonFinance0

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At Monday’s close, the Dow Jones Industrial Average (US30) was up 0.67%, while the S&P 500 Index (US500) added 0.87%. The Nasdaq Technology Index (US100) closed positive 1.11%. The US stock indices rose moderately, with the Dow Jones Industrials Index hitting a 1-week high. Yesterday, reduced geopolitical tensions helped stocks rise, as the exchange of strikes between Iran and Israel may be temporarily halted. Additionally, Nvidia’s (NVDA) 4% gain on Monday helped tech stocks as Nvidia recovered some of the 10% drop from last Friday.About 180 companies in the S&P 500 (US500), or more than 40% of total capitalization, are scheduled to report earnings this week, including four of the “Magnificent Seven” technology companies: Tesla (TSLA), Alphabet (GOOG), Microsoft (MSFT) and Meta Platforms (META).Equity markets in Europe mostly went up yesterday. Germany’s DAX (DE40) rose by 0.70%, France’s CAC 40 (FR40) closed up 0.22%, Spain’s IBEX 35 (ES35) jumped by 1.50%, and the UK’s FTSE 100 (UK100) closed positive 1.62%.The gold price held near $2,300 per ounce on Tuesday, near a three-week low, amid easing fears of widening conflict in the Middle East. Investors scaled back investments in safe-haven assets in favor of riskier ones after Tehran downplayed the significance of a retaliatory Israeli drone strike on Iran aimed at easing tensions.Turkey, Iraq, Qatar, and the UAE signed a transportation agreement to connect the Persian Gulf to Europe. The memorandum obliges the signatories to create the conditions for the project’s implementation. The project aims to create a 1,200-kilometer road and railroad connecting the Persian Gulf to Turkey via Iraq.The US approved new sanctions against Iran’s oil sector in the oil market, targeting shippers and refiners of Iranian crude. This led to a slight rise in oil prices on Tuesday. The fundamental and geopolitical situation will keep oil above $80 per barrel in the coming weeks.Asian markets were predominantly up yesterday. Japan’s Nikkei 225 (JP225) rose by 1.00%, China’s FTSE China A50 (CHA50) decreased by 0.09% for the day, Hong Kong’s Hang Seng (HK50) was up 1.77%, and Australia’s ASX 200 (AU200) was positive 1.08%.Singapore’s annual inflation rate for March 2024 slowed to 2.7% from 3.4% in the previous month, below market expectations of 3.1%. This is the lowest rate since September 2021, as inflation declined across most sub-indices.The Australian dollar climbed to $0.645, hitting a one-week high, as investors reacted to April’s solid Purchasing Managers’ Index (PMI) reports. The data showed that private sector growth in Australia increased by the most in 2 years in April as manufacturing activity approached breakeven levels, while service sector activity remained active for the third consecutive month. The latest data supports the view that the Reserve Bank of Australia (RBA) may keep interest rates on hold longer to counter inflationary pressures. Some analysts also suggest that the RBA may raise rates again in the second half of 2024 due to rising activity. Investors are awaiting the country’s inflation data to be released later this week.The latest PMI data in Japan showed that manufacturing activity was close to stable in April, while service sector activity rose the most in 11 months. Investors look forward to the Bank of Japan’s policy decision later this week. The BOJ is pressured to raise rates again because of steady inflation and a weakening yen. Still, the Central Bank has signaled that it will maintain favorable monetary conditions for some time.