Oil Prices Fall for Sixth Straight Session as Tech Stocks Rise on AI Optimism

Asian and European stocks rose on September 23 as oil prices continued to fall for a sixth straight session. The pan-European STOXX 600 index increased by 0.17 per cent to 643.86 points, while Brent crude futures fell 0.40 per cent to $98.83 a barrel.

The decline in oil prices was welcomed by investors as it could help keep inflation in check, which in turn would impact the global interest rate outlook. However, caution persists as similar optimism has unravelled quickly in the past, according to Cole Smead, chief executive officer and portfolio manager at Smead Capital Management.

The AI buzz continued to lift tech stocks globally, with Samsung up nearly 1 per cent and Taiwan's benchmark firming 0.8 per cent to near all-time peaks. The data hardware sector has been buoyed by strong consumer take-up of Meta's Muse agent, which has topped US app download charts in the past two weeks.

Chinese President Xi Jinping was due to arrive in Washington later in the day amid speculation that a trade truce between the US and China will be extended, and there could be cooperation over AI. The prospect of higher interest rates helped the dollar eke out multi-week highs on the euro, sterling, and Canadian dollar, improving its technical background.