Global Markets Slip as Oil Prices Renew Inflation Concerns
Global stock markets were mostly lower Thursday as crude oil prices remained above $100 a barrel, renewing concerns about inflation, household costs and economic growth. European trading was mixed, with Germany’s DAX and Britain’s FTSE 100 declining slightly, while France’s CAC 40 posted a modest gain. U.S. stock futures edged higher after Wall Street’s major indexes fell Wednesday.
Asian markets also largely retreated. Hong Kong’s Hang Seng, mainland China’s Shanghai Composite and Australia’s S&P/ASX 200 declined, while South Korea’s Kospi and Taiwan’s Taiex recorded smaller losses. Japan’s Nikkei 225 reversed earlier declines to finish slightly higher, and India’s Sensex was nearly unchanged.
Energy markets remained the main focus. Brent crude rose to $101.52 per barrel after crossing $100 on Wednesday, while U.S. benchmark crude reached $96.42. The increase followed disruptions to oil shipments through the Strait of Hormuz amid continuing conflict between the United States and Iran. Before the conflict, roughly one-fifth of the world’s oil supply passed through the waterway.
Higher energy costs weighed on consumer-focused companies, including Amazon, Starbucks and Home Depot. Energy stocks gained, with Exxon Mobil and Chevron advancing. U.S. gasoline prices were about 32% higher than a year earlier, while diesel reached a record and continued rising, adding pressure to transportation, production and household expenses.
Investors were also monitoring inflation and interest rates. Producer and consumer price reports were expected to show inflation above 3%, exceeding the Federal Reserve’s 2% target. Rising Treasury yields added pressure to equities, despite plans by the Treasury Department to repurchase up to $6 billion in long-term debt. Meta shares rose after the company introduced Muse, a personal artificial intelligence assistant.
Currency trading was stable, with the dollar slightly higher against the yen and the euro edging upward against the dollar.