LONDON (AFP) – Oil prices rose further yesterday as tensions mount in the Middle East, while Hong Kong’s stock markets resumed a rally caused by China’s recently-announced measures to stimulate its economy.
Europe’s main equity indices diverged nearing the half-way stage, with London weighed down by a rebounding pound alongside gains for Paris and Frankfurt.
The dollar was mixed against its main rivals as traders awaited key US jobs data that could give a clearer idea of the pace of planned interest-rate cuts from the Federal Reserve.
“Oil prices continued their ascent,” noted investment director at trading group AJ Bell Russ Mould, as Brent North Sea crude and the main US contract each gained about one per cent.
“This is good news for oil producers but bad news for millions of companies and consumers as they face higher energy and transport costs,” he added.
Buyers of company shares were back in the driving seat in Hong Kong, after a pause on Thursday to the rally that started last week thanks to Beijing unveiling a raft of economy-boosting measures.
The stimulus – mainly targeting the property sector – has seen stocks in the city and mainland China enjoy a blistering run of more than 20 per cent on hopes that Beijing can finally reignite growth.
Hong Kong’s Hang Seng Index closed up almost three per cent yesterday, with tech firms leading the charge, while developers – who have seen eye-watering gains over the past week – fluctuated as investors awaited cues from China.
Mainland Chinese markets were closed for the Golden Week holiday.
There were also gains in Tokyo at the end of a rollercoaster week dictated by a volatile yen after the election of Shigeru Ishiba as prime minister.
“Investors are likely to remain on edge as they weigh the evolving monetary policy signals from Japan against shifting geopolitical developments,” said ACY Securities currency analyst Luca Santos.
