London — Global equity markets moved higher Wednesday as falling oil prices eased pressure on investors and renewed enthusiasm for artificial intelligence continued to bolster technology shares.
European stocks rose during the session, with the pan-European STOXX 600 increasing 0.17% to 643.86 points. Brent crude futures fell 0.40% to $98.83 a barrel, extending their decline to a sixth straight session.
The movement in energy markets was driven in part by signs that oil supplies could improve. Sources told Reuters that Saudi Arabia had restarted operations at its East-West Pipeline and may have already resumed exports from the Red Sea port of Yanbu.
Investors were also watching developments involving the Strait of Hormuz. A sustained restoration of oil flows through the strategic waterway could ease inflationary pressure and affect expectations for global interest rates. However, markets remained cautious after previous indications of improvement failed to persist.
Lower crude prices supported equities as investors considered how reduced energy costs could affect inflation. On Wall Street, futures tracking the S&P 500 and Nasdaq-100 were modestly higher, rising 0.10% and 0.03%, respectively.
Technology stocks remained an important source of market momentum. South Korea’s benchmark gained 0.9%, while Samsung shares rose nearly 1%. Taiwan’s benchmark climbed 0.8% toward record levels.
The semiconductor industry continued to benefit from strong demand linked to artificial intelligence. South Korean technology exporters have reported particularly strong semiconductor shipments, while investors are monitoring the performance of new AI products from major technology companies.
Meta Platforms’ Muse AI assistant has drawn significant consumer interest, supporting demand for hardware used to operate artificial-intelligence applications. Investors are also turning their attention to an AI product from Alphabet’s Google Labs as they assess whether consumer demand can expand beyond Meta’s offering.
China-U.S. relations also remained on investors’ radar. Chinese President Xi Jinping was scheduled to arrive in Washington as markets watched for developments involving trade and possible cooperation in artificial intelligence.
Japan’s stock market was closed for a holiday, though Nikkei futures were trading at 66,775, about 1,760 points above Friday’s cash close.
Softer oil prices and continued enthusiasm for AI have supported global equities this week, although investors remain attentive to developments affecting energy supplies and monetary policy.
Original article
Comments