Global shares mainly increased on Monday. Oil prices dropped by over $4 after U.S. President Donald Trump announced positive progress in talks aimed at ending the war with Iran.
Key European stock indices showed gains. France’s CAC 40 rose by 1.1% to reach 8,203.32. Germany’s DAX increased by 1.0% to 25,148.39. Meanwhile, Britain’s FTSE 100 added 0.2% to 10,466.26. Trading in the U.S. markets was closed due to the Memorial Day holiday.
In Asia, Japan’s Nikkei 225 saw a significant rise of 2.9%, closing at 65,158.19. Australia’s S&P/ASX 200 moved up by 0.4% to finish at 8,692.00. The Shanghai Composite went up by nearly 1%, closing at 4,152.57. Trading remained closed in South Korea and Hong Kong due to holidays for Buddha’s birthday.
The United States is reportedly close to finalizing a deal with Iran. This deal aims to end the conflict, reopen the Strait of Hormuz, and have Iran surrender its stockpile of highly enriched uranium. Regional officials conveyed these details to The Associated Press on Sunday.
Reopening the Strait of Hormuz is expected to influence oil prices significantly. The strait’s closure has impeded oil tankers from delivering crude globally, affecting countries like Japan, which imports almost all its oil through the strait.
Analyst Stephen Innes noted that markets are shifting from geopolitical fears towards potential economic benefits, leading to decreased oil prices and a weaker dollar.
In recent U.S. market activities, the S&P 500 gained 0.4%, the Dow Jones Industrial Average increased 0.6%, and the Nasdaq composite rose 0.2%.
U.S. benchmark crude oil fell $4.77, price per barrel down to $91.83. Brent crude, an international standard, also fell by $4.86 to $98.68. In currency updates, the U.S. dollar weakened to 158.95 yen, down from 159.16 yen. The euro edged up to $1.1644 from $1.1605.
U.S. companies’ earnings reports exceeded analysts’ expectations, contributing to market strength, though inflation concerns persist due to the ongoing conflict.
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