Oil prices slipped below the $60 level on Tuesday on renewed hopes for an end to the Russia-Ukraine war, while stock markets mostly fell as investors prepared for key U.S. jobs and inflation data.
A deal to end the war could ease sanctions on Russian oil, adding to oversupply concerns already weighing on the market.
International oil benchmark Brent dropped below $60 per barrel for the first time since May, while the main U.S. crude contract, WTI, also declined.
U.S. President Donald Trump said Monday that a deal to end the Ukraine war was closer than ever, after Washington said it offered Kyiv NATO-like security guarantees and voiced confidence Moscow would accept.
“I think we’re closer now than we have been ever,” Trump told reporters, after he spoke to Ukrainian counterpart Volodymyr Zelenskyy and a host of European leaders.
European defense stocks slid on Tuesday following the update on the talks, analysts said.
“A peace deal between Russia and Ukraine looks to be back on the agenda, but there have already been multiple false dawns this year,” noted Derren Nathan, head of equity research at Hargreaves Lansdown.
London and Frankfurt stock markets both slid, while Paris ticked up, after Asian markets closed lower.
Weak U.K. jobs data, meanwhile, strengthened expectations that the Bank of England (BoE) will trim borrowing costs on Thursday.
The European Central Bank (ECB) is expected to hold interest rates steady this week.
U.S. data in focus
Investors’ attention turns to the release later in the day of the U.S. November jobs data and the delayed reading for October, which will be followed on Thursday by consumer price index (CPI) figures.
“From a market perspective, the most important question is whether the report opens the door for more rate cuts in the early part of next year,” said Jim Reid, managing director at Deutsche Bank.
He added that a softer labor market could support bets for further Federal Reserve (Fed) rate cuts.
Worries over the tech sector were also weighing on sentiment, with recent warnings about an AI-fuelled bubble compounded by disappointing earnings last week from Oracle and Broadcom.
Speculation that vast sums invested in artificial intelligence will take some time to make returns, if at all, has also acted as a drag.
Seoul lost more than 2% while Tokyo, Hong Kong and Shanghai were all down more than 1%.
The yen held gains against the dollar ahead of an expected rate hike by the Bank of Japan (BOJ) on Friday.
The Daily Sabah Newsletter
Keep up to date with what’s happening in Turkey,
it’s region and the world.
SIGN ME UP
You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.