Wall Street set for mixed open after sentiment rebounds in European trading

By Elizabeth Howcroft

PARIS, Aug 6 (Reuters) - Investor sentiment rebounded during European trading connected Thursday, helped by optimism astir institution earnings, but Wall Street was acceptable for a mixed opening, with Nasdaq futures down aft chipmakers disappointed traders.

Markets were besides waiting for immoderate U.S. absorption ‌to a projected woody betwixt Iran and Oman, which traders interpreted arsenic advancement towards ending the U.S.-Iran conflict.

Stock markets faltered connected Wall Street ‌overnight and during Asian trading hours, arsenic investors turned cautious astir AI spending, and immoderate net - including chipmakers Sandisk and Advanced Micro Devices and information retention institution Western Digital - failed to conscionable ​investors' lofty expectations.

But the rally resumed arsenic European markets opened, with the pan-European STOXX 600 touching an all-time high, driven by media and telecoms stocks. It was up 0.4% connected the time by 1102 GMT, portion London's FTSE 100 was up 0.2%, France's CAC 40 was up 0.7% and Germany's DAX was up 0.2%.

Wall Street futures were mixed, with S&P 500 e-minis nudging up 0.1% but Nasdaq e-minis down 0.7% connected the day.

Hani Redha, multi-asset portfolio manager astatine MetLife, said the overnight losses ‌were a earthy correction to a rally that was acceptable ⁠to continue. Strong net and renewed enthusiasm for AI-related tech stocks person pushed Wall Street to grounds highs successful caller sessions.

"This is conscionable portion of an wide hangover from a tremendous enactment we've had successful the marketplace implicit the past fewer ⁠trading sessions," helium said.

"We stay beauteous constructive...I don't expect the gait of returns that we saw implicit the past fewer weeks, but we should beryllium inactive successful a marketplace situation which is conducive for hazard assets, equities successful particular."

PROPOSED IRAN-OMAN DEAL

Oil prices initially held beneath $80 a barrel, aft Reuters reported a projected woody betwixt Iran and Oman to ​help ​end the U.S.-Iran conflict, which could springiness Tehran power implicit ships entering the Gulf done ​the Strait of Hormuz. The U.S. did not remark connected ‌the proposal, which would beryllium 1 of the biggest concessions to Iran yet.

Still, prices roseate again during the European session, and Brent crude futures were past up 1.1% connected the time astatine $80.34 a tube portion U.S. West Texas Intermediate futures were up 1% astatine $75.93.

Gold concisely touched its highest successful 7 weeks.

MetLife's Redha said that though the U.S.-Iran struggle has been 1 of the main factors influencing markets this year, on with AI spending, the marketplace was becoming little delicate to it.