Global stock markets rise as oil prices continue to fall
World stock markets gained on Monday amid easing inflation concerns, while oil prices dropped sharply on hopes of a possible negotiated resolution to the Iran war.
All major Wall Street indexes closed higher on Monday, with the Nasdaq Composite leading gains, climbing 2.3% to close at a fresh record. Stocks had been under pressure the previous week after the US Federal Reserve raised interest rates to curb inflation, which had been partly fueled by rising energy prices linked to the war in Iran.
Investor sentiment improved as oil prices fell on growing hopes for a diplomatic breakthrough in the Iran conflict. Susannah Streeter, head of investment strategy at Wealth Club, said inflation worries have eased. Oil prices dropped roughly 4% after US President Donald Trump signaled he would be willing to meet with Iranian President Masoud Pezeshkian, who is set to attend the UN General Assembly in New York this week.
Market indexes
The Dow Jones Industrial Average rose 0.7% to 52,048.83 points, while the S&P 500 climbed 1.5% to 7,764.70 points. European markets also advanced — London's FTSE 100 gained 0.8%, Paris's CAC 40 rose 0.9%, and Frankfurt's DAX 30 increased 1.1%. Investors largely shrugged off fresh political troubles for German Chancellor Friedrich Merz after his party's defeat in two state elections on Sunday.
Oil and gas prices
WTI crude in New York fell 4.5% to $95.78 a barrel, while Brent crude in London dropped 3.4% to $100.34 a barrel. Dutch TTF natural gas prices also fell, dropping 7.9% to €73.25 per megawatt-hour. In currency markets, the euro weakened slightly against the dollar and the pound, while the dollar strengthened against the Japanese yen.
