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Wall Street Mixed as Oil Prices Drop for 6th Session

The major Wall Street indexes ended mixed on Thursday. While the Dow and S&P 500 closed lower, European stocks reached a new high for a week on the back of strong financial stocks, and on hopes that a ceasefire in Ukraine would be achieved.

U.S. president Donald Trump nominated Stephen Miran, Chairman of the Council of Economic Advisers to be a Federal Reserve Governor.

The oil prices fell for the sixth session in a row after the Kremlin announced that Russian President Vladimir Putin will meet with Trump who is looking to find a breakthrough on the Ukraine War.

Gold prices, which are seen as a haven of safety in turbulent times, reached a new two-week record.

The yields on 30-year Treasury bonds were slightly higher after a weak auction. This was the latest in a series of sales that showed a lackluster demand.

The MSCI index of global stocks rose by 3.03 points or 0.32% to 936.26.

Dow Jones Industrial Average dropped 0.51% to 42,968.64. S&P 500 fell 0.08% to 6340.00. Eli Lilly shares declined after disappointing data for its oral weight-loss drug.

The Nasdaq Composite rose 0.35%, to 21,242.70.

"There are persistent downside risks." Capital.com analyst Kyle Rodda noted that the number of negative surprises in official statistics is increasing. "Valuations also seem stretched. The forward price-to-earnings ratio is at its highest level in four years. "Trade uncertainty persists."

Shares were pressured earlier by a report that Federal Reserve governor Christopher Waller would be Trump's first choice to lead the central bank. This raised concerns about the Fed's independent.

The U.S. increased tariffs on imports of goods from dozens countries on Thursday. This raised the average import duty in the U.S. to its highest level in over a century.

Investors weighed mixed corporate results and U.S. Tariffs as they weighed up the European share market's biggest daily gain in more than two weeks.

The pan-European STOXX 600 closed at its highest level in a week.

The euro was also supported by the plans for a Trump-Putin meeting over the Ukraine war.

Emmanuel Cau of Barclays, head of European equity strategies, said that a ceasefire would be "an extra positive".

Four of the nine policymakers at the Bank of England, concerned about inflation, voted against a cut in interest rates.

The BoE may be ending its rate-cutting spree. The pound rose 0.67%, to $1.3444.

Dominic Bunning is the head of G10 FX Strategy at Nomura.

Japanese shares had earlier reached a record-high. MSCI's broadest Asia-Pacific share index outside Japan closed at 1.03% while Japan's Nikkei rose 0.65%.

Taiwan's benchmark stock index jumped up to 2.6%, reaching a record high of more than a year. The shares of chipmaker TSMC, who announced this year additional investments in their U.S. manufacturing facilities, and is therefore expected to be relatively unaffected by the U.S. duty on imported chips, soared at a record high.

The dollar index (which measures the greenback in relation to a basket of currency) fell by 0.14%. At $1.1667, the euro was up 0.07%.

The yield of benchmark U.S. 10 year notes increased by 1 basis point to 4.242%. The 30-year bond yield also advanced by 1.1 basis points, to 4.8221%.

Gold spot rose by 0.93%, to $3,399.67 per ounce, its highest level since July 23. U.S. Gold Futures closed 0.6% higher, at $3.453.70 per ounce.

After Trump's remarks on progress in negotiations with Moscow, global oil prices erased earlier gains. Both benchmarks reached eight-week lows.

Brent crude futures fell 46 cents or 0.7% to $66.43 per barrel. U.S. Crude Futures dropped 47 cents or 0.7% to $63.88.

(source: Reuters)