Oil prices declined while global stock markets posted gains, as investors watched closely for signals from talks between U.S. President Donald Trump and Chinese leader Xi Jinping and assessed potential implications for the fragile ceasefire between the United States and Iran.
Brent crude, the global oil benchmark, fell 0.7% to $107 per barrel. Meanwhile, West Texas Intermediate (WTI), the U.S. benchmark, dropped 0.9% to $101.2 per barrel.
The modest decline ended a three-day rally, with the oil market reflecting “growing concerns that a deal between the U.S. and Iran appears increasingly unlikely,” according to analysts at Deutsche Bank.
At the same time, equity markets recovered from the previous day’s losses, which were partly driven by weaker-than-expected U.S. inflation data. In Europe, major indices rose during morning trading. In Asia, South Korea’s KOSPI index led regional gains, while an index tracking Taiwan’s 50 most valuable companies declined.
“Global equity markets are attempting a modest rebound this morning, but sentiment remains far from optimistic as the ongoing Middle East deadlock continues to weigh on risk appetite,” wrote Matt Britzman, senior equity analyst at investment platform Hargreaves Lansdown.
He added that markets are also closely watching President Trump’s meetings in China, as any sign of progress in trade negotiations could shape the next direction in global investor sentiment.
