The Swiss blue-chip SMI index showed little movement at the start of the week, reflecting cautious trading sentiment ahead of key U.S. earnings reports. The SMI’s subdued opening followed a mixed performance in Asian markets, where major indices traded narrowly.
Gold futures advanced 0.75% to $4,637 per troy ounce, marking the highest close since mid-May. The rally extended after the U.S. Treasury unexpectedly announced plans to increase purchases of long-dated government bonds, a move aimed at lowering borrowing costs amid rising debt levels. The intervention stoked concerns over U.S. fiscal sustainability and the dollar’s long-term purchasing power, prompting investors to seek hedges in bullion.
In currency markets, the Swiss franc strengthened 0.11% against the dollar to 0.8004 CHF/USD, while the euro traded at 0.9345 CHF, down 0.10%. The dollar index remained under pressure as markets weighed the impact of elevated U.S. debt levels and political uncertainty on the greenback’s reserve status. The Canadian dollar also edged lower ahead of potential trade measures from the U.S.
Asian equities were subdued, with Japan’s Nikkei 225 nearly flat at 65,968.71 points and the Topix up 0.3% to 4,080.30. Chinese benchmarks fell, with the Shanghai Composite down 0.6% to 3,880.33 and the CSI 300 shedding 1.1% to 4,566.57. Semiconductor stocks lagged as investors reassessed profitability risks in the sector ahead of Nvidia’s earnings release on Wednesday. SoftBank dropped 3.3%, while Tokyo Electron rose 2.1%.
Samsung Electronics declined 8% after its $79 billion share buyback program fell short of investor expectations. Rival SK Hynix gained 0.4%, supported by its own capital return initiative. Geopolitical tensions and inflation concerns further dampened regional risk appetite, with Bank of Japan policy expectations also influencing sentiment.
Oil prices retreated from last week’s gains, with Brent crude falling 1.5% to $92.94 per barrel and U.S. WTI down 1.7% to $85.61. Traders awaited details from U.S. Treasury Secretary Scott Bessent on potential sanctions against Iran, which has shown no signs of easing control over the Strait of Hormuz. The geopolitical risk premium remained elevated as the conflict in the Middle East showed no signs of resolution.
In the U.S., the Dow Jones Industrial Average recovered 0.98% to 53,277.01 on Friday, paring some of the week’s losses after a sharp drop earlier in the session. The S&P 500 added 0.43% to 7,674.37, while the Nasdaq 100 rose 0.33% to 29,308.86, snapping a three-day losing streak. For the week, the Dow fell 0.8%, the S&P 100 lost 1.4%, and the Nasdaq 100 declined 2.5%.
Gold mining stocks surged alongside bullion, with Newmont and Barrick each gaining about 3%. Copper equities also rallied, with Freeport McMoRan reaching record highs and Southern Copper nearing its peak, as supply tightness in the industrial metal market supported prices. Bitcoin-linked equities such as Strategy, Coinbase, and Robinhood Markets jumped 6.3%, 8.2%, and 13.7%, respectively, as the cryptocurrency surged to multi-month highs amid renewed institutional interest and favorable policy signals.
Among the Magnificent Seven, Tesla shares rose over 5%, nearly closing a downward gap from a month ago, while Nvidia slipped 1% ahead of its earnings release. Broadcom shares ended 1.2% higher after reports of ongoing talks to secure over $60 billion in financing for AI chip initiatives, with beneficiaries including Anthropic. Retailer Ross Stores advanced 4.4% following an upward revision to full-year guidance after a strong quarter.
Pharmaceutical stocks Merck & Co and Moderna gained 2.4% and 8.9%, respectively, extending gains after the companies announced a breakthrough in a melanoma vaccine. Since the midweek announcement, Moderna’s shares have more than doubled. Goldman Sachs led Dow advancers with a 3.7% rise.
