Europe Stocks Rise After Asia Rally as Oil Falls Below $90

Stocks rose across Europe in early trade on Tuesday, November 10, after a strong close in Asia and the best day on Wall Street since April. Falling oil prices did much of the work. Brent crude dipped below 90 dollars a barrel for the first time since August after President Donald Trump said further strikes on Iran were quite unlikely, and investors took the comment as a sign the war is winding down.

Europe opens higher

A little after the open in Europe, the FTSE 100 in London was up 0.73 percent, the CAC 40 in Paris gained 1.20 percent, and the DAX in Frankfurt advanced 1.14 percent, Euronews reported from Associated Press figures. The Stoxx 600 rose 0.7 percent in early trade, Dow Jones Newswires said, with energy intensive industrial stocks among the leaders as cheaper oil cut their expected fuel costs. Oil and gas shares lagged the wider market as crude fell.

The gains extended a strong Monday. On November 9 the Euro Stoxx 50 closed 1.94 percent higher, the FTSE 100 rose 1.02 percent, and the DAX gained about 1.7 percent.

Asia closes sharply higher

Asian markets closed well before Europe opened. Japan's Nikkei 225 closed 2.9 percent higher, South Korea's Kospi rose 4.4 percent, and Taiwan's Taiex added 2.5 percent. Chip shares led in Seoul and Taipei. Taiwan Semiconductor Manufacturing Company, the largest maker of AI chips, said on Tuesday that its October revenue rose 59.7 percent from a year earlier. SoftBank Group jumped about 14 percent in Tokyo ahead of its results later in the day. Hong Kong and Shanghai also closed higher, and Australia's S and P/ASX 200 rose 1.1 percent. Markets in India were closed for a holiday.

Oil and the Iran talks

Brent crude for January delivery fell more than 2 percent on Tuesday morning to just above 90 dollars a barrel, after dipping below that level earlier in the session, Dow Jones Newswires reported. West Texas Intermediate traded near 85 dollars. Both contracts had already fallen hard on Monday, when Brent dropped almost 6 percent. Trump met Qatar's prime minister at the White House on Monday and said there was positive momentum toward an end to the conflict. Cheaper oil lowers fuel and transport costs across the economy, and it takes pressure off the inflation numbers that central banks watch.

Wall Street waits for inflation data

United States futures edged higher on Tuesday morning. Dow Jones futures gained 0.5 percent, S and P 500 futures rose 0.3 percent, and Nasdaq contracts were flat, Dow Jones Newswires said at 09:41 GMT. The moves were small next to Monday's rally, when the S and P 500 rose 2.35 percent to 7,549.94, the Nasdaq Composite gained 2.74 percent to 25,253.14, and the Dow Jones Industrial Average added 2.15 percent to 52,389.75. All three indexes rose more than 2 percent on the same day for the first time since April.

Nvidia traded about 1 percent higher in premarket trade after its heavy fall on Monday, when investors reacted to the board investigation involving chief executive Jensen Huang. CoreWeave, a cloud computing company watched closely by AI investors, reports earnings after the closing bell.

Key numbers and what comes next

The day's test arrives at 13:30 UTC, when the United States publishes October consumer prices. Economists expect a 0.3 percent monthly rise, down from 0.6 percent in September, with core prices up 0.2 percent. The report is the last inflation reading before the Federal Reserve meets on December 9 and 10. Dow Jones Newswires said markets price an 83.8 percent chance of a quarter point rate rise at that meeting, citing LSEG data. The ten year Treasury yield held below 4.86 percent on Tuesday morning, gold held above 4,100 dollars an ounce, and the dollar slipped against the yen and the euro.

This report is information only and is not investment advice. Do your own due diligence before buying or selling any security.