Global stock index jumps 2.16% as Brent falls to $92.57
Key Facts
The MSCI World Index rose 2.16% to 1,108.96 points on Nov. 9, in a session when Wall Street’s main indexes climbed more than 2%, while Brent crude fell 5.8% to $92.57 a barrel. Reuters said the decline in oil helped ease inflation concerns that had weighed on economies worldwide during the year. U.S. stocks gained after losses had raised concerns that Democratic victories in the midterm elections could slow the construction of artificial intelligence data centers. U.S. stocks posted their best daily performance since April, according to the Associated Press, with the S&P 500 recording its second consecutive daily gain. Brent remained above $90 a barrel at the close, while the moves in oil and stocks reflected the Nov. 9 session specifically.
On Wall Street, the S&P 500 rose 2.3% to 7,549.94 points, the Dow Jones Industrial Average gained 2.2% to 52,389.75 points, and the Nasdaq climbed 2.7% to 25,253.14 points. The Associated Press reported that Brent’s decline supported stocks, while the drop in crude remained linked to uncertainty over the course of the war with Iran. Brent had topped $112 a barrel in early November before retreating as the outcome of the conflict remained unclear. In the bond market, the yield on the 10-year U.S. Treasury rose to 4.87% from 4.86% late on Nov. 6. But it remained below a peak of more than 5.30% reached in October, the agency reported.
Reuters attributed the decline in oil to comments by U.S. President Donald Trump on Sunday, when he said he was unlikely to order new attacks on Iran as long as talks aimed at ending the war were making progress. This came despite reports of ships being targeted near the Strait of Hormuz, keeping regional developments in the background of crude trading. Trump said it was "very unlikely that he would order new attacks on Iran as long as talks to end the war were making progress." According to Reuters, the drop in oil eased inflation concerns that had weighed on global economies during the year, coinciding with the rise in stocks during the session. Markets outside the United States had mixed performances on Nov. 9: France’s CAC 40 rose 1.2% and Japan’s Nikkei gained 2.3%, while South Korea’s Kospi fell 0.8%.
The rally extended to East Asian markets on Nov. 10, though gains varied across indexes. Japan’s Nikkei closed up 2.9% at 60,459.58 points, and South Korea’s Kospi rose 4.4% to 5,239.13 points, according to the Associated Press. Taiwan’s Taiex also jumped 2.5%, while Hong Kong’s Hang Seng rose 0.6% to 24,584.81 points. The Shanghai Composite added 0.2% to 3,666.12 points, a smaller gain than moves in Tokyo and Seoul. These figures reflect the Nov. 10 session, separate from the gains in U.S. and global markets the previous day.
In trading on Tuesday, Nov. 10, oil prices fell again: Brent declined 1.2% to $91.48 a barrel, and U.S. crude fell 1.3% to $85.72, according to the Associated Press. Brent thus remained above $90 in the figures reported by the agency, while U.S. crude fell below that level. Investors continued to await the U.S. Consumer Price Index report for October, due that day. The agency’s report forecast inflation rising to 3.9% from 3.7% in September. The wait for the data kept inflation at the forefront of market attention, after lower oil prices helped ease concerns during the previous session’s stock rally.