Global stocks mostly fall as US rally shows signs of fatigue
NEW YORK: Global stocks mostly fell Thursday (May 7) as US indices pulled back from records while Washington awaited Tehran’s response to a US plan to end the Middle East war and reopen the Strait of Hormuz.
Crude oil fell sharply early in the session amid hopes for a peace deal that ends the strait disruption. But oil prices later cut losses.
The benchmark international oil contract Brent Crude finished just above US$100 at US$100.06 a barrel, down 1.2 per cent.
Major US indices were in positive territory early in the day, but finished lower. Both the S&P 500 and Nasdaq retreated from records.
“I just think the market is a little tired here after a pretty extensive run since the end of March,” said Tom Cahill of Ventura Wealth Management.
“There are a lot of bits of information coming out with reference to what’s going on between Iran and the United States,” Cahill said. “So I think the market right now is more focused on that than anything else.”
Earlier, European stock markets declined after big gains the previous session, while leading Asian markets climbed.
Tokyo soared 5.6 per cent, which largely reflected resumption of trading in Japan after public holidays this week.
“The wild streak of enthusiasm which hit markets amid hopes for a major de-escalation in the Iran conflict is tempering,” noted Susannah Streeter, chief investment strategist at Wealth Club.
“There’s a realization that there are more hurdles to climb for a longer-term resolution to be agreed, even though Iran is reported to be studying a US peace proposal aimed at formally ending the conflict.”
