The Swiss Market Index (SMI) was indicated 0.14% higher at 14,552 points on Wednesday, extending gains from the previous session as European and U.S. equity futures showed mixed signals ahead of key U.S. inflation data.
Gold prices eased 0.3% to $4,642.74 per ounce, retreating from a three-month high reached on Tuesday. The retreat followed a sharp rally driven by the U.S. Treasury’s announcement of bond buybacks, which had lifted the metal to its strongest level since mid-May. Investors now await the July personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, due for release Wednesday afternoon. Fed Chair Kevin Warsh is also scheduled to speak at the Jackson Hole symposium on Friday, with markets parsing signals for future monetary policy direction.
"The most gold-friendly scenario would be weaker-than-expected inflation paired with a dovish or balanced message from Warsh," said Wael Makarem, chief financial market strategist at Exness. "This would reinforce expectations of lower real yields and reduce the opportunity cost of holding a non-yielding asset." Makarem also noted that renewed concerns over U.S. fiscal sustainability, amplified by recent Treasury buyback plans, could further support gold demand.
Oil prices fell for a third consecutive day, with Brent crude down 2.5% to $86.35 per barrel and U.S. West Texas Intermediate (WTI) down 2.4% to $80.39. The decline followed reports that Iran and Oman had resumed talks over the Strait of Hormuz, a critical chokepoint for global oil shipments. The potential easing of tensions in the region reduced supply disruption risks. Earlier in the week, U.S. threats of sweeping sanctions against Iran had failed to materialize, with Treasury Secretary Scott Bessent’s remarks on Monday omitting concrete measures beyond existing secondary sanctions threats.
"The widely anticipated broad sanctions against Iran fell short of expectations," said Carsten Fritsch, commodity analyst at Commerzbank. "Instead, Bessent focused on secondary sanctions against buyers of Iranian oil, which remain a potential tool rather than an immediate action."
In equities, Nvidia shares rose 2.2% on Tuesday, snapping a multi-day losing streak ahead of its after-hours earnings release. The chip giant, a bellwether for the artificial intelligence boom, is expected to deliver strong results given robust demand for its AI chips. "Nvidia is doing everything right, and business is booming," said Mark Malek, portfolio manager at Siebert. "The market expects good news, but there’s downside risk if results disappoint."
Other chip stocks outperformed, with AMD and Marvell Technology gaining nearly 5% each. Moderna surged 14% after announcing positive clinical trial results for a melanoma vaccine, though its stock remains well below the 2023 peak it reached last week. Merck & Co also hit a record high, closing 3.8% higher. Conversely, Dick’s Sporting Goods plummeted 31% after lowering its outlook due to weak performance at its Foot Locker acquisition, dragging Nike down 3.1%.
European equity futures were mixed, with the Stoxx 600 up 0.12% but the DAX expected to decline 0.1%. In Asia, the Nikkei 225 rose 0.6% to 66,227.55, while the Shanghai Composite gained 0.9%. The dollar weakened 0.1% against the yen to 158.97 and edged up 0.1% versus the Swiss franc to 0.8024. The euro held steady at $1.1669 and gained 0.1% to 0.9364 francs.
The Bitcoin price rose 0.6% to $78,704, while the Swiss franc and euro traded near recent levels against the dollar.
