Oil prices fell, and global stock markets traded mixed Thursday, awaiting an update on a US plan to end the Middle East war and reopen the Strait of Hormuz.
After having plunged more than 10 per cent at one point Wednesday on peace hopes, crude futures fell more than another two per cent.
The benchmark international oil contract, Brent Crude, was back under $100 per barrel.
Wall Street traded mixed; European stock markets declined after big gains the previous session, while leading Asian markets climbed.
Tokyo soared 5.6 per cent, which largely reflected the resumption of trading in Japan after the country’s public holidays this week.
“The wild streak of enthusiasm which hit markets amid hopes for a major de-escalation in the Iran conflict is tempering,” noted Susannah Streeter, chief investment strategist at Wealth Club.
“There’s a realisation that there are more hurdles to climb for a longer-term resolution to be agreed, even though Iran is reported to be studying a US peace proposal aimed at formally ending the conflict.”
US President Donald Trump said an agreement could be near after positive talks, with Iran adding that it would pass on its latest position to mediator Pakistan.
READ ALSO: Oil Sinks, Stocks Rally On Peace Hopes, Samsung Tops $1trn
The war, launched by the United States and Israel in late February, has seen Iran respond with attacks across the Middle East and impose a chokehold on the Strait of Hormuz, the gateway to the Gulf oil and gas industries and a strategic trade route.
In foreign exchange Thursday, the dollar lost some of its safe haven support.
Investors in Tokyo were closely watching the yen after speculation of intervention by the Japanese government to prop up the beleaguered currency.
Norway’s central bank on Thursday hiked its guiding rate by a quarter point to 4.25 per cent, citing a risk that the war in the Middle East could worsen already elevated inflation.
“Inflation is too high and has run above target for several years,” Norges Bank governor Ida Wolden Bache said in a statement.
Earnings Boost
Away from the war, there has been a fresh wave of cash pumped into the technology sector as traders snap up all things artificial intelligence, helped by standout earnings from Apple, Google parent Alphabet, Microsoft and Samsung during the ongoing first-quarter reporting season.
“It does feel as if US stock indices are in a melt-up phase,” said Trade Nation analyst David Morrison, using an expression for a situation when a large amount of money is invested in stocks in a short period of time.
Both the S&P 500 and the tech-heavy Nasdaq Composite set fresh all-time highs as trading got underway, even if they only edged higher.
“FOMO (fear of missing out) is playing an important role here, yet it’s difficult to work out what could trigger a significant pullback,” said Morrison. “That in itself is a concern.”
The Emirates Group on Thursday announced a three per cent rise in annual profits to $5.7 billion despite severe disruption to flights owing to the war.
Key Figures At Around 1530 GMT
Brent North Sea Crude: DOWN 2.6 per cent at $98.61 a barrel
West Texas Intermediate: DOWN 2.9 per cent at $92.36 a barrel
New York – DOW: DOWN 0.2 per cent at 49,835.39 points
New York – S&P 500: UP 0.1 per cent at 7,374.66
New York – Nasdaq Composite: UP 0.5 per cent at 25,971.26
London – FTSE 100: DOWN 1.6 per cent at 10,276.95 (close)
Paris – CAC 40: DOWN 1.2 per cent at 8,202.08 (close)
Frankfurt – DAX: DOWN 1.0 per cent at 24,663.61 (close)
Tokyo – Nikkei 225: UP 5.6 per cent at 62,833.84 (close)
Hong Kong – Hang Seng Index: UP 1.6 per cent at 26,626.28 (close)
Shanghai – Composite: UP 0.5 per cent at 4,180.09 (close)
Euro/dollar: UP at $1.1768 from $1.1752 on Wednesday
Pound/dollar: UP at $1.3614 from $1.3594
Dollar/yen: UP at 156.44 yen from 156.39 yen
Euro/pound: UNCHANGED at 86.45 pence
AFP
