London (AFP) – Stock markets fell on Wednesday while oil rose sharply as investors weighed the chances of a deal to end the Mideast war, after US President Donald Trump had hailed “very good” talks at the United Nations between US and Iranian representatives. Trump added that a three-hour meeting Tuesday had been “very productive” and that the two countries “have another one scheduled in the very near future.”
Hopes for a deal to get Gulf oil and gas flowing freely through the Strait of Hormuz, as global leaders gathered for the United Nations General Assembly in New York, had sent oil prices down sharply in recent sessions. Stephen Innes at Quintex Intel said the UN meeting mattered “because it shifts the market from pure (war) escalation pricing toward a genuine diplomatic process, even if a final deal still looks distant.” But in the absence of further developments, Brent North crude, the international benchmark, climbed around three percent back above $100 per barrel to the verge of $103 on Wednesday.
“A sudden spike in the oil price caught investors off guard and reminded them not to be complacent about inflationary pressures,” says Dan Coatsworth, head of markets at AJ Bell, pointing to “persistent geopolitical tensions.” Prices had earlier fallen on a report that the world’s biggest crude exporter, Saudi Arabia, had rebooted operations along its East-West Pipeline—a crucial oil export route shut down by drone attacks. The OECD on Wednesday said that global economic growth had been “resilient” in many countries despite the war, as it slightly raised its economic output forecasts for 2026.
More than two hours into trading on Wall Street, indices were down after the Nasdaq had hit an all-time high Tuesday on enthusiasm for all things AI. The Dow and the broader S&P 500 slid 0.6 percent while the Nasdaq shed 1.0 percent to 26,967.32 points. Europe lost ground—Frankfurt closing 0.7 percent down and Paris losing almost half of one percent while London finished flat. Asian indices also pulled back. Earlier in Asian trading, Hong Kong closed down one percent, shrugging off an announcement by Chinese tech giant Alibaba that it would expand its overseas data centers, and Shanghai lost 0.4 percent. South Korea’s tech-rich Kospi and Taiwan’s Taiex index—home to chipmaking titan TSMC—gained nearly one percent.
– Key figures at around 1545 GMT –
Brent North Sea Crude: UP 3.7 percent at $102.87 per barrel
West Texas Intermediate: UP 2.4 percent at $92.68 per barrel
New York – DOW: DOWN 0.6 percent at 51,545.30 points
New York – S&P 500: DOWN 0.6 percent at 7,715.66
New York – Nasdaq Composite: DOWN 1.0 percent at 26,967.32
London – FTSE 100: FLAT at 10,705.26 (close)
Paris – CAC 40: DOWN 0.4 percent at 8,123.41 (close)
Frankfurt – DAX: DOWN 0.7 percent at 25,410.63 (close)
Hong Kong – Hang Seng Index: DOWN 1.0 percent at 24,834.12 (close)
Shanghai – Composite: DOWN 0.4 percent at 3,936.52 (close)
Tokyo – Nikkei 225: closed for a holiday
Euro/dollar: DOWN at $1.1391 from $1.1451 on Tuesday
Pound/dollar: DOWN at $1.3253 from $1.3344
Dollar/yen: UP at 158.36 from 157.37
Euro/pound: UP at 85.96 pence from 85.81 pence
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© 2024 AFP
