Global stocks mixed as oil prices climb amid Iran-U.S. conflict
Equity markets in Europe and Asia showed modest gains while U.S. futures slipped, as Brent crude rose near $94 a barrel following renewed fighting between the United States and Iran.
Global equity markets displayed mixed performance on Wednesday, with European benchmarks posting modest advances and U.S. futures edging lower. France's CAC 40 rose 0.6% to 8,410.68, Germany's DAX gained 0.4% to 25,106.51, and Britain's FTSE 100 climbed 0.8% to 10,666.51. In contrast, Dow Jones futures slipped 0.2% to 52,366 and S&P 500 futures fell 0.4% to 7,518.75.
In Asia, Japan's Nikkei 225 slipped 0.2% to 66,115.60 after data showed both imports and exports increased, a move amplified by a weaker yen that raises the yen-denominated value of trade. Australia's S&P/ASX 200 rose 0.3% to 8,823, South Korea's Kospi gained 0.7% to 6,797.70, while Hong Kong's Hang Seng fell nearly 1% to 24,892.66. The Shanghai Composite was largely unchanged, edging up less than 0.1% to 3,867.03.
Oil prices continued to climb on the back of ongoing attacks between the United States and Iran. U.S. crude rose $2.90 to $87.24 a barrel, and Brent crude increased $2.91 to $93.92 a barrel.
"Oil makes the situation more difficult because Japan imports most of its energy. A weaker yen and higher crude prices arrive together like two waves hitting the same sea wall," said analyst Stephen Innes, a former trader.
The dollar eased slightly against the yen, trading at 163.11 per yen, while the euro ticked up to $1.1409. Higher energy costs are expected to feed inflation, potentially prompting the Federal Reserve and other central banks to consider further rate hikes, which could dampen economic growth and weigh on equity valuations.
AP Business Writer Stan Choe contributed to this report.