London (AFP) – European and Asian stock markets rose Tuesday following a tech-led recovery on Wall Street, while oil prices slid on hopes of an end to the Middle East conflict. The dollar firmed on increasing prospects of another increase to US interest rates next month to combat inflation, which is expected to remain elevated for some time despite easing energy costs.
Stock markets advanced “as AI-bounce momentum and lower oil prices boost risk sentiment,” noted Neil Wilson, investor strategist at Saxo UK. Technology shares rallied in Asia on Tuesday following widespread gains for US equities, even though chip giant Nvidia slumped amid a probe into its boss Jensen Huang over an affair with an alleged Chinese spy. Amazon, Microsoft, and Apple were among the big gainers Monday, feeding through to South Korean tech giants SK hynix and Samsung, whose valuations jumped Tuesday. There were big gains also for technology firms in Tokyo and Taiwan.
– Iran optimism –
Europe’s main indices made solid gains around midday and were boosted also by optimism that the US-Iran war may end soon. US President Donald Trump said Monday that there was momentum toward ending the war with Iran, as he declared that the country “militarily, is effectively over,” but kept open the possibility of new strikes. The price of Brent North Sea crude, the main international benchmark, dropped briefly under $90 a barrel Tuesday for the first time since August. Despite the easing, oil prices remain far above levels seen on the eve of the Middle East conflict.
A top Federal Reserve official said Tuesday that the US central bank must act swiftly and forcefully to address inflation, signaling plans to back an interest rate hike in December. “Inflation remains too high,” Fed Governor Christopher Waller said during an address in London. “Monetary policy will be needed, sooner rather than later, to return inflation to a path that will reach two percent in the medium term.” The speech came ahead of the release later Tuesday of key US consumer price inflation (CPI) data for October.
– Key figures at around 1145 GMT –
London – FTSE 100: UP 0.4 percent at 10,825.37 points
Paris – CAC 40: UP 1.0 percent at 8,318.67
Frankfurt – DAX: UP 1.2 percent at 26,582.75
Tokyo – Nikkei 225: UP 2.9 percent at 60,459.58 (close)
Seoul – Kospi: UP 4.4 percent at 5,239.13 (close)
Hong Kong – Hang Seng Index: UP 0.4 percent at 24,557.04 (close)
Shanghai – Composite: UP 0.1 percent at 3,663.72 (close)
New York – Dow: UP 2.2 percent at 52,389.75 (close)
Brent North Sea crude: DOWN 2.0 percent at $90.71 per barrel
West Texas Intermediate: DOWN 1.6 percent at $85.50 per barrel
Euro/dollar: DOWN at $1.1215 from $1.1221 on Monday
Pound/dollar: DOWN at $1.3425 from $1.3440
Dollar/yen: UP at 158.18 from 157.48 yen
Euro/pound: UP at 83.53 from 83.50 pence
© 2024 AFP
