World oil prices advanced Monday on moves by China to boost its economy as traders tracked an uncertain future for Syria and the wider crude-rich Middle East.
Major stock markets diverged as investors reacted to political crises in South Korea and France, and tracked the perspectives for interest rate cuts.
Wall Street stocks retreated, with both the S&P 500 and Nasdaq pulling back from all-time highs as investors await key US inflation data later in the week.
Gold, seen as a haven investment, pushed higher.
“The week has kicked off on a largely upbeat tone following the welcome announcement that Chinese authorities plan to enact further stimulus over the year ahead,” noted Joshua Mahony, analyst at traders Scope Markets.
“This shift has already fueled sharp gains in key assets, with the Hang Seng surging 2.8 percent and commodities like copper, zinc, iron ore, and palladium rallying on expectations of increased demand.”
Oil prices rose around 1.5 percent as traders tracked developments in Syria after president Bashar al-Assad was ousted over the weekend as Islamist-led rebels swept into Damascus.
Investors also reacted to developments in China where President Xi Jinping and other top leaders said Monday they would adopt a more “relaxed” approach to monetary policy as they hashed out plans to boost the economy next year.
The world’s second-largest economy is battling sluggish domestic consumption, a persistent crisis in the property sector and soaring government debt — all of which threaten Beijing’s official growth target for this year.
Leaders are also eyeing the second term of Donald Trump in the White House, with the president-elect indicating he will reignite his hardball trade policies, fueling fears of another standoff between the superpowers.
Elsewhere in Asia, South Korean stocks tumbled as the country was racked with political uncertainty after President Yoon Suk Yeol escaped impeachment following his brief imposition of martial law last week.
The Paris stock market rose on Monday, with President Emmanuel Macron apparently eyeing a broad alliance to form a new French government, after Michel Barnier was ousted last week over his 2025 budget plan.
Rates and inflation
Investors also have their eyes on possible cuts to interest rates.
The European Central Bank is expected to lower borrowing costs this week and the US Federal Reserve holds its rate meeting next week.
But US consumer price inflation (CPI) and wholesale price inflation data are due to be released this week, which could influence the Fed’s decision.
Among individual companies, shares in Nvidia fell 2.6 percent at the start of trading after China on Monday launched an investigation into the US chip giant for allegedly violating its anti-monopoly laws.
Hershey surged 10.9 percent following reports it had been approached by Mondelez over a potential takeover. Mondelez lost 2.3 percent.
Key figures around 2130 GMT
New York – Dow: DOWN 0.5 percent at 44,401.93 (close)
New York – S&P 500: DOWN 0.6 percent at 6,052.84 (close)
New York – Nasdaq Composite: DOWN 0.6 percent at 19,736.69 (close)
Paris – CAC 40: UP 0.7 percent at 7,480.14 (close)
Frankfurt – DAX: DOWN 0.2 percent at 20,345.96 (close)
London – FTSE 100: UP 0.5 percent at 8,352.08 (close)
Seoul – Kospi: DOWN 2.8 percent at 2,360.58 (close)
Tokyo – Nikkei 225: UP 0.2 percent at 39,160.50 (close)
Hong Kong – Hang Seng Index: UP 2.8 percent at 20,414.09 (close)
Shanghai – Composite: DOWN 0.1 percent at 3,402.53 (close)
Euro/dollar: DOWN at $1.0555 from $1.0568 on Friday
Pound/dollar: UP at $1.2746 from $1.2744
Dollar/yen: UP at 151.21. yen from 150.00 yen
Euro/pound: DOWN at 82.78 from 82.92 pence
Brent North Sea Crude: UP 1.4 percent at $72.14 per barrel
West Texas Intermediate: UP 1.7 percent at $68.37 per barrel
burs-jmb/dw
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