The Japan Times - Stocks mixed as oil drops, inflation stays high

Paris and Frankfurt rose in mid-afternoon trading, though London lagged behind as energy heavyweights BP and Shell were hurt by cheaper oil.

"Lower energy prices are providing a supportive environment for European markets," said Fawad Razaqzada, market analyst at FOREX.com. "The resilience of the European economy has been more impressive than many had expected."

In New York, all the main indexes were slightly lower in morning trading.

Just before Wall Street opened, the Commerce Department reported that the personal consumption expenditures price index -- the Federal Reserve's preferred inflation measure -- rose 3.7 percent in July from a year ago.

While that was largely in line with analyst expectations, it still leaves inflation well above the Fed's two-percent target, keeping alive fears of an interest rate increase.

Thursday sees the start of the annual Jackson Hole symposium of central bankers and other economic policy makers, which could provide clues on US interest rate policy.

"Inflation is still too high for comfort, and investors will be watching to see whether Fed Chair Kevin Warsh uses Friday's Jackson Hole speech to address how policymakers plan to bring it back toward the Fed's long-term target," said eToro  analyst Bret Kenwell.

Meanwhile, both main crude oil contracts have tumbled this week as Iran and Oman edge towards a deal to open a temporary shipping corridor in the Strait of Hormuz.

While US Treasury Secretary Scott Bessent said Washington was declaring an "economic D-Day" against Tehran and its trade partners, the United States has so far held back from enforcing the measures, which in any case appear softer than many had feared.

Oil prices had dropped more than three percent Wednesday before recovering a bit, with the international benchmark Brent back well below $90 a barrel.

Investors are also awaiting Wednesday's after-hours earnings report from AI chip giant Nvidia.

The company has become a key marker of the reporting season as investors use it to judge the health of the AI boom that has sent markets to record highs over the past two years.

The figures come during rising concern about when the vast sums of cash being pumped into AI software and hardware will see a meaningful return, if ever.

"The second-quarter number itself may end up mattering less than what management says about the quarter ahead," said Axel Rudolph, a market analyst at IG.

"It's entirely possible for the headline print to look solid and the stock to still sell off if the third-quarter guide comes in below what's already embedded in current estimates," he added.

Nvidia shares were down more than half a percent.

- Key figures at around 1335 GMT -

West Texas Intermediate: DOWN 2.1 percent at $80.53 per barrel

Brent North Sea Crude: DOWN 1.8 percent at $85.67 per barrel

New York - DOW: DOWN 0.1 percent at 53,514.20 points

New York - S&P 500: DOWN 0.1 percent at 7,670.27

New York - Nasdaq Composite: DOWN 0.2 percent at 26,107.56

London - FTSE 100: UP 0.1 percent at 10,902.63

Paris - CAC 40: UP 0.6 percent at 8,489.73

Frankfurt - DAX: UP 0.5 percent at 26,389.32

Tokyo - Nikkei 225: UP 0.6 percent at 66,262.16 (close)

Hong Kong - Hang Seng Index: UP 0.6 percent at 25,652.97 (close)

Shanghai - Composite: UP 0.6 percent at 3,912.52 (close)

Euro/dollar: DOWN at $1.1675 from $1.1674 on Tuesday

Pound/dollar: DOWN at $1.3633 from $1.3648

Euro/pound: UP at 85.63 pence from 85.52 pence

Dollar/yen: DOWN at 159.02 yen from 159.16 yen

M.Sugiyama--JT