Oil Price Plunge Fuels Global Market Rally Amid US Inflation Fears
Global equities mostly rose on Wednesday after oil prices plummeted the previous day. The decline in crude came as talks to end the US-Iran conflict remained stalled, with both sides providing mixed signals. However, Saudi Arabia's decision to restore half of its East-West pipeline capacity and the Trump administration's order to release more oil from emergency reserves provided a welcome boost.
The key Brent crude contract shed over two percent on Tuesday, while West Texas Intermediate fell by more than three percent, dipping below $90 per barrel. The losses were sustained on Wednesday, with Brent holding at around $102.76 and WTI at $89.51.
Not all markets shared the same optimism, with Seoul, Singapore, Manila, Jakarta, and Bangkok posting slight declines. However, Tokyo's Nikkei 225 index rose by 1.9 percent to 66,753.72, while Hong Kong's Hang Seng Index climbed 0.4 percent to 24,613.27.
The US is set to release personal consumption expenditure data for October later on Wednesday, with investors eagerly awaiting the figures. The data will likely provide crucial insights into inflation rates and inform the Federal Reserve's decision on interest rate hikes.