Oil prices are falling and stocks are rising as investors focus on how a meeting between US President Donald Trump and Chinese leader Xi Jinping will affect the currently fragile ceasefire between the US and Iran.
Brent crude, the world oil benchmark, fell 0.7% to $107 per barrel. The US benchmark WTI fell 0.9% to $101.2 per barrel.
Analysts at Deutsche Bank said in a note that oil prices ended a three-day rally with a modest decline, reflecting “increasing tensions over views that the U.S.-Iran deal is moving further away.”
Meanwhile, stock markets rose after yesterday’s decline, helped in part by weaker-than-expected US inflation data. The S&P 500 and Nasdaq futures became closer together, while Dow futures were flat. In Europe, major indexes were positive in morning trading. South Korea’s Kospi once again led a broad-based rally in Asia, while Taiwan’s index tracking 50 most valuable companies fell.
“Global stock markets are starting to inch higher this morning, but the mood is far from euphoric as the Middle East stalemate continues to weaken risk appetite,” Matt Blitzman, senior equity analyst at Hargreaves Lansdown, an online investment platform, said in a note.
“Investors are also keeping an eye on President Trump’s meeting with China, and any signs of progress on trade will likely set the tone for the next round of market sentiment,” he added.
