Oil prices are decreasing while stocks are increasing, as investors anticipate how discussions between US President Donald Trump and Chinese leader Xi Jinping might impact the existing delicate truce between the United States and Iran.
Brent crude, the worldwide oil standard, decreased by 0.7% to $107 a barrel. WTI, the American benchmark, decreased by 0.9% to $101.2 per barrel.
The slight drops ended a three-day surge, as oil prices indicated “growing anxiety that a US-Iran agreement appears more remote,” analysts at Deutsche Bank noted in a memo.
Equity markets rose after yesterday’s sell-offs, influenced in part by disappointing US inflation figures. S&P 500 and Nasdaq futures indicated a stronger start, while Dow futures remained unchanged. In Europe, key indices showed gains during morning trading. South Korea’s Kospi again spearheaded widespread gains across Asia, whereas an index monitoring Taiwan’s 50 most valuable firms declined.
“Global stock markets are attempting to rise slightly this morning, but the sentiment is anything but enthusiastic, as the persistent deadlock in the Middle East continues to weigh on risk appetite,” wrote Matt Britzman, a senior equity analyst at Hargreaves Lansdown, an online investment platform, in a note.
“Investors are closely observing President Trump’s discussions with China, as any indications of progress on trade are likely to influence the next phase of market sentiment,” he stated.
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