European stocks opened higher in defense shares, the Saudi stock market rose by 5%, spot gold remained at a high level, and the US dollar increased

On Wednesday, the 24th, the Euro Stoxx 50 index opened flat, with the European defense sector rising by 2.8%. The Saudi stock market rose by 5% due to potential easing of ownership restrictions. The Saudi banking stock index surged by 9%, reaching a record high. Alibaba pledged to increase investment in artificial intelligence, driving a significant rise in Chinese tech stocks and a slight uptick in Asian markets.

Geopolitical tensions pushed oil prices higher, with Brent crude nearing $68 per barrel. Federal Reserve Chairman Jerome Powell warned of persistent risks in the labor market and inflation, while U.S. Treasury yields maintained their upward trend. Spot gold remained high at $3,775 per ounce, and the U.S. dollar index rose.

• The Saudi stock market rose by 5% due to potential easing of ownership restrictions. The Saudi banking stock index surged by 9%, reaching a record high.
• The Euro Stoxx 50 index opened flat, the German DAX index opened flat, the UK FTSE 100 index fell by 0.1%, and the French CAC 40 index opened flat. The European defense sector rose by 2.8%, with Saab AB up nearly 5%, RENK up 2.5%, Leonardo up over 2%, and Rheinmetall up 1.5%.
• The Nikkei 225 index closed up 0.3% at 45,630.31 points. The Tokyo Stock Exchange index rose by 0.2% to 3,170.45 points.
• The U.S. dollar spot index rose by 0.1%.
• The euro fell by 0.2% to $1.1793.
• The yield on the 10-year U.S. Treasury bond remained largely unchanged at 4.10%.
• The yield on the 10-year Japanese government bond fell by 1 basis point to 1.640%.
• Spot gold rose by 0.2% to $3,773.19 per ounce.
• West Texas Intermediate crude rose by 0.3% to $63.58 per barrel.
• Bitcoin rose by 0.6% to $112,678.12.

Divisions Within the Federal Reserve Widen

Federal Reserve officials have shown divisions regarding the policy outlook. Some Fed policymakers are increasingly concerned about risks in the labor market, while others primarily worry that inflation above target may be further exacerbated by tariffs and other policies.

Fed Governor Bowman stated that as the labor market weakens, officials need to act decisively to cut rates. Chicago Fed President Goolsbee indicated he anticipates more inflation ahead.

Fed Chairman Powell warned of persistent risks in the labor market and inflation, while reiterating that policymakers face a difficult path when weighing further easing measures. U.S. Treasury yields maintained their upward trend, and gold traded near record highs.

Defense stocks were boosted. The European defense sector rose by 2.8%, with Saab AB up nearly 5%, RENK up 2.5%, Leonardo up over 2%, and Rheinmetall up 1.5%.

Oil prices continue to rise due to increased supply risks from Russia. Brent crude oil rose 1.6% on Tuesday and continues to climb, approaching $68 per barrel.