Markets Today: Nikkei clears 59000, Gold holds high ground, FTSE 100 prints fresh highs. US jobless claims up next

• Nikkei 225 surged past 59,000 to a record high, driven by AI optimism and banking sector gains.
• European shares showed caution near record highs; the Japanese yen recovered, and the US dollar was flat.
• Gold and oil prices edged higher, boosted by safe-haven demand and the anticipation of US-Iran talks.
• Geopolitical risk and US jobless claims data now in focus.

Most Read: Gold (XAU/USD) bulls eye acceptance above $5200/oz, can NVIDIA earnings impact haven demand?

The Japanese market reached a historic milestone on Thursday as the Nikkei 225 surged past the 59,000 level for the first time. Although the index retreated slightly from its intraday peak of 59,332.43, it still managed a record closing high of 58,753.39.

This 0.3% gain contributed to an impressive 16.4% climb for the year so far, while the broader Topix index outperformed with a 1% increase. The rally was largely underpinned by a shift in investor sentiment regarding artificial intelligence, as previous fears of industry disruption gave way to optimism.

Software and IT services emerged as the session's primary drivers. Shift, a software testing firm, led the charge with a massive 14.4% jump, its strongest performance since mid-2024. Other major tech players followed suit, with NEC Corp and Fujitsu recording gains of 9.4% and 6%, respectively.

This strength in software helped offset a pullback in the semiconductor sector, where heavyweights like Advantest and Tokyo Electron shed around 2% each, acting as the primary weights on the Nikkei after markets digested Nvidia's recent results.

Outside of technology, the banking sector saw significant upward momentum following hawkish comments from Bank of Japan Governor Kazuo Ueda. In a newspaper interview, Ueda hinted at the possibility of an early interest rate hike, sending shares of major lenders like Mizuho Financial Group and Mitsubishi UFJ Financial Group up by 5.1% and 3.3%.

This financial strength provided a necessary cushion against losses in other sectors, such as electronic components and retail, where Taiyo Yuden and Takashimaya each saw declines of over 4%.

The regional landscape remained more subdued compared to Japan's record-breaking run. While Tokyo celebrated new highs, neighboring markets struggled to find footing; Hong Kong’s Hang Seng Index dropped 0.76%, and China’s CSI300 blue-chip index eased by 0.2%.

These mixed results across Asia highlight a divergence between Japan's momentum-driven market and the more cautious sentiment prevailing in Chinese and Hong Kong equities.

European markets showed little movement on Thursday morning as the STOXX 600 hovered near record highs at 633.34 points.

Market participants are currently balancing a wave of corporate financial reports against the broader implications of Nvidia’s latest revenue forecasts. While the US chip giant’s strong outlook provided a backdrop of stability, its shares saw a relatively subdued 1.1% gain in Frankfurt, reflecting a cautious "wait-and-see" approach regarding the long-term profitability of massive AI investments.

The technology sector remained a focal point of volatility and mixed performance across the continent.

Schneider Electric saw its shares climb 3% following core earnings that exceeded expectations, fueled primarily by the surging demand for data center infrastructure.

Conversely, the Belgian chemicals firm Syensqo suffered a dramatic 22.6% collapse, leading to a temporary trading halt after the company failed to meet fourth-quarter earnings targets.

In London, the London Stock Exchange Group managed to defy broader market skepticism, gaining 3.6% after announcing a new share buyback program. This move comes as the group navigates pressure from activist investors and ongoing concerns that advancements in artificial intelligence could disrupt its traditional business model.

Overall, the day's activity highlights a market increasingly sensitive to how individual companies are either capitalizing on or being threatened by the rapid evolution of AI.

On the FX front, the Japanese yen showed signs of recovery during Thursday’s Asian trading session, strengthening 0.3% against the US dollar to reach 155.87.

This rebound follows a period of notable weakness where the currency hit two-week lows, sparked by the Japanese government’s appointment of two pro-stimulus academics to the central bank’s board.

However, the yen managed to steady itself as subsequent comments from Bank of Japan officials provided much-needed support, helping the currency claw back some of its recent losses.

In the broader currency market, the US dollar index remained relatively flat at 97.585 as traders navigated a landscape of political and legal uncertainty. Markets are closely watching for President Donald Trump’s response to a recent Supreme Court ruling that struck down his emergency tariffs, a move that has kept the greenback’s momentum in check.

Despite the dollar's general stability, it slipped 0.3% against the offshore Chinese yuan, which hit a three-year high of 6.8324. This surge in the yuan persists due to seasonal settlement demand, even as China’s central bank signals a desire to moderate the currency's rapid appreciation.

European and Antipodean currencies experienced a day of range-bound trading with minimal volatility.

The euro saw a marginal gain of 0.1% to reach $1.1817, while the British pound held steady at $1.3555.

Similarly, the Australian dollar remained unchanged at $0.7126. The New Zealand dollar provided a brief moment of drama by dipping below the $0.60 threshold before staging a recovery to finish flat at $0.6003.

The digital asset market faced a more difficult session, characterized by a general downward trend in major cryptocurrencies.

Bitcoin retreated 0.7%, trading at $68,478.38, while Ether saw a more significant decline, tumbling 2.0% to settle at $2,059.01.

This cooling off in the crypto space stands in contrast to the relatively stable, albeit cautious, environment seen in traditional fiat currency markets.

Currency Power Balance

Gold prices saw a modest uptick on Thursday as investors turned to the precious metal as a safe-haven asset.

This renewed interest was primarily driven by ongoing uncertainty surrounding US tariff policies and anticipation regarding the outcome of US-Iran talks scheduled for later in the day. Spot gold had climbed 0.4% to reach $5,190.01 per ounce, maintaining its strong momentum after hitting a three-week peak earlier in the week.

The performance across the broader metals market was more varied. While spot gold gained ground, US gold futures for April delivery edged slightly lower, dropping 0.4% to $5,206.80.

Silver experienced a more pronounced decline, with spot prices falling 1.4% to settle at $88.18 per ounce.

In contrast, PGMs (platinum group metals) showed resilience; spot platinum rose by 0.9% to $2,308.11 per ounce, and palladium followed suit with a marginal 0.3% increase to $1,800.14.

Oil prices edged higher on Thursday as market participants weighed the possibility of a diplomatic resolution to the escalating tensions between the United States and Iran.

Markets are closely monitoring a high-stakes third round of talks in Geneva, where US envoys Steve Witkoff and Jared Kushner are meeting with an Iranian delegation.

The primary concern remains whether these negotiations can avert a military conflict that would threaten global supply, particularly through the critical Strait of Hormuz. While Brent futures rose 0.3% to $71.06 per barrel and WTI futures increased 0.2% to $65.58, these gains were partially restrained by a significant build in US crude inventories.

The current market environment is defined by a delicate balance between geopolitical risk and ample supply.

Earlier in the week, Brent prices hit their highest levels since last July as the US moved military assets into the Middle East to pressure Tehran over its nuclear and ballistic missile programs. Given that Iran is the third-largest producer in OPEC, any extended disruption to its exports could tighten the global market significantly.

However, bearish data from the US Energy Information Administration has served as a counterbalance, reminding traders of a growing domestic surplus even as the threat of regional instability looms.

Read More:

• Chart Alert: WTI crude oil bullish flag in play above $64.15 as US-Iran talk looms
• EUR/USD: Trapped at 1.1800 as Euro Area inflation cools significantly… what next?
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The day ahead will bring a speech by Christine Lagarde and in a short while we will get consumer confidence and economic sentiment data from the Euro Area.

The primary economic focus for the United States today centers on the release of weekly jobless claims. Forecasters expect initial filings for unemployment benefits to show a modest increase to 216,000, while continuing claims are projected to edge slightly lower.

Given the incremental nature of these shifts, the data is not expected to trigger significant market volatility.

Looking at the broader currency landscape, the US dollar may see a period of stabilization throughout the day.

However, it is important to note that some downside risks persist for the greenback. The positive sentiment following Nvidia’s strong earnings report continues to bolster risk appetite, which could keep investors tilted toward growth-oriented assets and away from defensive, safe-haven currencies for a bit longer.

From a technical perspective, the FTSE 100 index continues to hold comfortably above the 100-day MA and extend its gains.

Having printed fresh highs this morning around the 10834 handle the index may be eyeing further gains..

For now though, bulls remain firmly in control even though a pullback to support around the 10735 and 10662 mark cannot be ruled out.

Only a four-hour candle close below the higher low swing point at 10662 would lead to a change in structure and could lead me to reevaluate my outlook.

Immediate support rests at 10735 before the 10662 handle comes into focus.

Resistance to the upside at 10834 needs to be cleared if bulls are to make a run for the 10900 and potentially 11000 handle..

FTSE 100 Index Daily Chart, February 26, 2026

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