Oil decline supports global stocks despite US interest pressures economy

aljazeera.net
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Global stocks recorded a mixed performance yesterday, Thursday, supported by lower oil prices and waning concerns about energy supply disruptions, while investors continued to evaluate the repercussions of US monetary policy after hawkish signals from the Federal Reserve.

US stocks rose supported by falling crude prices and improved risk appetite, as the Nasdaq Composite Index rose by about 1.5%, while the Standard & Poor’s 500 Index rose by about 1%, while the Dow Jones Index recorded limited gains.

Technology stocks lead Wall Street’s rise as risk appetite improves (Anatolia)

Reuters reported that the decline in oil prices eased fears of a return to energy-related inflationary pressures, which enhanced demand for technology stocks and the growth sector. On the other hand, investors remained cautious in light of expectations that interest rates in the United States would remain at high levels for a longer period.

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Gulf and oil

The improvement in the morale of traders in global markets came after the decline in oil prices after concerns about energy supplies from the Middle East receded, amid optimism about the possibility of the continued flow of oil from the region.

According to Reuters, investors saw that the decline in crude reduces the possibility of the global economy being exposed to a new energy shock, after concerns related to navigation and oil supplies led to a strong rise in prices over the past weeks.

On the other hand, the decline in oil pressured the shares of energy companies in a number of global markets, with declining expectations related to the profits of oil and gas producers.

Europe

European stocks ended the session slightly lower after a rise that lasted for several days. Reuters reported that the European Stoxx 600 index fell by about 0.3%, ending a series of gains that extended for five consecutive sessions.

Pumpjacks are visible before sunrise Monday, Feb. May 24, 2025, in Hobbs, N.M. (AP Photo/Julio Cortez)
Low oil prices ease concerns related to global inflation (Associated Press)

Energy stocks led losses as crude prices fell, while travel and entertainment companies benefited from falling fuel costs.

Asia

Asian markets closed trading higher yesterday, supported by lower energy prices and improved demand for high-risk assets. Reuters reported that investors focused more on declining concerns about oil supplies than on the Federal Reserve’s tough tone.

The region’s markets have benefited from lower energy costs, a key factor for economies that rely heavily on oil and gas imports. The decline in crude oil also reinforced expectations of a decline in inflationary pressures and an improvement in economic activity during the coming period.

In general, low oil prices supported most global markets, while US interest rate expectations remained the main factor limiting investors’ rush in stock markets towards more risk.



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