Global shares were mostly lower on Thursday as investors grappled with rising oil prices and awaited talks between U.S. President Donald Trump and Chinese President Xi Jinping. France’s CAC 40 fell 0.8% to 8,061.10, while Germany’s DAX dropped 0.9% to 25,183.19. Britain’s FTSE 100 edged down 0.1% to 10,693.15. U.S. shares were also poised for a decline, with Dow futures down 0.4% to 51,669.00 and S&P 500 futures falling 0.6% to 7,725.75.
In Asia, Japan’s Nikkei 225 rose 0.8% to 65,513.99, driven by gains in chipmakers amid growing interest in artificial intelligence. Australia’s S&P/ASX 200 declined 0.7% to 8,702.00. Hong Kong’s Hang Seng lost 0.3% to 24,761.13, while China’s Shanghai Composite dipped 1.2% to 3,888.37. Trading was closed in South Korea due to the Chuseok autumn harvest holiday.
Oil prices continued to climb, with U.S. crude up 2.35% to $94.33 per barrel and Brent crude gaining 2.77% to $106.94. Brent crude remains significantly higher than the roughly $72 it cost before the war with Iran began. Concerns persist that the conflict will disrupt oil supplies from the Middle East for an extended period. Talks between the U.S. and Iran, mediated by third parties, have yet to yield concrete results, adding to market uncertainty.
Read Also: Ebola vaccine tested against Bundibugyo species
Investors are closely monitoring the Trump-Xi meeting, where discussions are expected to cover trade, the Iran war, and AI. Analysts remain cautious about the likelihood of significant agreements. Meanwhile, the Federal Reserve’s recent interest rate hike, aimed at curbing stubbornly high U.S. inflation, has added to market uncertainty. Fed Governor Michael Barr emphasized in a speech this week that further hikes “are likely to be needed” to achieve the Fed’s 2% inflation target.
The Bank of Japan’s recent rate increase, intended to stabilize the yen, has had limited impact. The yen’s weakness, coupled with rising oil prices, poses challenges for Japan, a major oil importer. In currency markets, the U.S. dollar edged up to 158.37 Japanese yen from 158.30 yen, while the euro remained unchanged at $1.1388.
Leave a Reply