Stocks Rise as Oil Eases After Russian Diesel Deal Despite Middle East Tension

Dow Jones
6 hours ago
 
 

U.S. stock futures rose as oil prices eased despite fresh attacks on Saudi Arabia, after U.S. President Trump announced an "energy ceasefire" between Russia and Ukraine.

Nasdaq futures rose 0.3% after Trump said his administration also reached an agreement for Russia to supply large amounts of diesel to the U.S. and global markets.

Trump said Sunday that Russia and Ukraine agreed to stop attacking each other's energy facilities, although Moscow hasn't confirmed an agreement.

The U.S. Treasury market is closed Monday for Columbus Day, while the Japanese bond market is also closed.

Futures for the Dow Jones Industrial Average advanced 0.2% while S&P 500 futures added 0.3%. European stocks started Monday higher, with the Europe-wide Stoxx 600 index rising 0.44% after closing the previous week higher.

Germany's DAX was up 0.4%, led by Commerzbank and Deutsche Bank, which were up 1.6% and 1.4%, respectively. London's FTSE 100 index was up 0.6%, also boosted by banks with HSBC, Barclays and Lloyds, up 2%, 1.55% and 1.5%, respectively.

Brent crude was down 0.6% to $104.90 a barrel, while WTI futures fell 0.8% to $91.10 a barrel.

However, a more meaningful decline in refined product prices requires normalized conditions in the Middle East, according to ING.

"Not just in the amount of oil flowing from the Persian Gulf, but also in the way this oil is coming out," analysts at the firm said. "Inefficient trade flows of oil from the Middle East have led to a significant surge in tanker freight rates, which will likely keep product prices elevated."

Brent climbed after attacks on Riyadh's international airport before reversing gains. An attack on King Khalid International Airport on Saturday killed 12 people and injured 309 others, Saudi Arabia's General Authority of Civil Aviation said. Attacks on oil tankers also continued over the weekend.

Elsewhere, 10-year U.K. government bond yields fell 3.9 basis points to last trade at 5.417%, having hit a 19-year high of 5.527% last week, LSEG data showed. However, gilt yields remained close to the multidecade highs reached last week as inflation concerns and fiscal jitters continue.

Eurozone government bond yields were also lower, as the 10-year German Bund yield fell 2.7 basis points to 3.462%, while the 10-year French 10-year OAT yield declined 2.7 basis points to 4.836%, according to Tradeweb.

Gold prices inched lower: New York futures were down 0.2% to $4,209.50 a troy ounce.

The dollar was steady, with the DXY dollar index flat at 102.199, as investors weighed the developments between Russia and Ukraine.

For the coming week, focus will be on U.S. inflation data on Wednesday and Thursday. Third-quarter U.S. earnings season gets underway on Tuesday, starting with large banks.

 
 

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