“It remains to be seen how long the ceasefire will last and [regarding] the White House’s claims that the war is over,” Smith said.
“Trump is still said to be applying pressure on Iranian petrodollars, so there’s a risk that’s not finished just yet.
“Just as with the trade situation there remains some encouraging developments, but it is far from resolved.”
In the domestic market, Fonterra’s share price rose 4.17% to $6.75, up 27c, as investors see positive signs regarding unit price growth.
Outside investors who are not allowed to hold shares in the Fonterra co-operative can invest in units that give them access to economic rights similar to those of a share.
“Dairy prices have been strong and it showed through in recent trade figures. The dairy sector has been enjoying a purple patch and that’s good news for the payout there and the economy.”
Fonterra is due to announce its results in late September, with strong earnings expected.
Elsewhere on the market, Ebos Group recorded $5,968,855.35 worth of shares changing hands, with its share price rising to $38.15, up 95c.
Infratil also had a strong day with 625,563 shares being traded, lifting its share price 15c to $10.40.
Smith said investors will be keeping an eye on the US inflation figures, set to be released in a few weeks’ time.
“[US Federal Reserve chairman Jerome] Powell is worried that they don’t know whether tariffs are going to have proved transitory, and I suppose the other thing we don’t know is with those final tariff amounts, where they’re going to land.
“A couple of other Fed officials who are voting said that if the inflation numbers come in and behave themselves, then they’d be in favour of a July rate cut, so there’d also be quite a bit of interest in that.”
Global stocks were mixed on Wednesday as markets weighed lingering worries about the Iran-Israel conflict, while Nvidia surged to an all-time high on bullishness over artificial intelligence.
Analysts cited not only concerns that the ceasefire between Iran and Israel could break down, but leaked US intelligence that said strikes had set back Tehran’s nuclear programme by just a few months.
“Maybe the US bombardment didn’t destroy the Iran nuclear programme,” said Jack Ablin of Cresset Capital Management, adding that revelations about the Iran nuclear programme suggested the Iran story is not a “new chapter”.
The S&P 500 finished a choppy day flat, while the Dow edged lower and the Nasdaq advanced.
“Investors are sort of catching their breath, since we had a very strong move on Monday and Tuesday,” said Sam Stovall, chief investment officer at CFRA Research. “Nvidia’s on everyone lips today.”
The chip company shot up 4.3% to US$154.31 ($255.14), giving it a market valuation of around US$3.76 trillion – more valuable than Microsoft, Apple and other tech giants.
– Additional reporting AFP
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
