Volkswacht Bodensee - Dow hits fresh record as oil prices tumble

Crude futures slid more than four percent as markets brushed aside Iran's denials while Trump described the two sides as talking and Iran facing "a last chance before decapitation."

The pullback in oil prices translated into a buoyant session in Wall Street, with all three major US indices in positive territory the entire day.

The Dow rose 1.3 percent to an all-time high, while the other two major indices were also firmly higher.

"The geopolitical developments and the drop in oil prices is really providing some fuel for stocks to run towards a new high," said Angelo Kourkafas of Edward Jones, who also cited strong corporate earnings as supportive of stocks.

Most large US tech companies advanced, with Amazon reaching a $3 trillion valuation for the first time.

While tech stocks were still under pressure in Asia on concerns of over-investment, European bourses cheered the pullback in oil prices.

Paris and Frankfurt both closed up more than one percent, with both hitting record highs.

But London slipped after the share price of one of its biggest constituents, pharmaceutical group AstraZeneca, slumped nine percent on a report that it could merge with US rival Bristol Myers Squibb.

Oil companies, which figure prominently in London's indices, followed oil prices lower.

Earlier in the day in Asia, technology companies again saw heavy losses as traders worried about whether massive investments in artificial intelligence will deliver long-lasting profits.

Chipmakers SK hynix and Samsung dragged down South Korea's Kospi index after a rally on Friday.

The yen meanwhile gained against the dollar after US and Japanese authorities confirmed Monday that they had bought Japan's currency on the open markets after months of weakness.

The yen was recently near its weakest point against the dollar level since 1986, hit by higher US interest rates, rising oil prices and capital outflows from Japan. On Monday afternoon, the dollar was trading at around 157 yen compared to above 163 yen last week.

The dollar was mixed against other major currencies.

Beyond the geopolitical risks, attention is also on the prospects for the US economy after the Federal Reserve held interest rates steady last week despite calls from some of its policymakers to raise rates to fight inflation.

"The focus as we move through the week will be the US non-farm payrolls report, which will be another test of the resilience of the US labor market," said Kathleen Brooks, research director at the trading platform XTB.

This week's calendar includes monthly US jobs data for July as well as earnings from Disney, McDonald's and SpaceX.

Despite falling on Monday, oil prices remain well above levels seen before the United States and Israel attacked Iran, sparking a war that has sharply curtailed Gulf exports of oil and gas and other key products.

Iran, for its part, said it is not currently negotiating with the United States.

"Our negotiations are with Oman to secure passage through the Strait of Hormuz," the critical oil corridor, foreign ministry spokesman Esmaeil Baqaei said.

- Key figures around 2020 GMT -

West Texas Intermediate: DOWN 5.1 percent at $80.34 per barrel

Brent North Sea Crude: DOWN 4.7 percent at $83.77 per barrel

New York - DOW: UP 1.3 percent at 53,178.41 (close)

New York - S&P 500: UP 1.5 percent at 7,600.50 (close)

New York - Nasdaq Composite: UP 2.1 percent at 25,913.90 (close)

London - FTSE 100: DOWN 0.1 percent at 10,857.70 (close)

Paris - CAC 40: UP 1.2 percent at 8,613.82 (close)

Frankfurt - DAX: UP 1.5 percent at 26,001.31 (close)

Seoul - Kospi: DOWN 5.1 percent at 6,257.45 (close)

Tokyo - Nikkei 225: DOWN 0.9 percent at 63,754.90 (close)

Hong Kong - Hang Seng Index: UP 0.5 percent at 26,009.40 (close)

Shanghai - Composite: DOWN 0.6 percent at 3,809.66 (close)

Dollar/yen: DOWN at 156.85 yen from 157.40 yen on Friday

Euro/dollar: DOWN at $1.1513 from $1.1527

Pound/dollar: DOWN at $1.3433 from $1.3483

Euro/pound: UP at 85.70 pence at 85.51 pence

burs-jmb/mjf

R.Buehler--VB