Global markets decline and oil prices exceed 100 dollars
Tensions between the US and Iran and shipment disruptions in the Strait of Hormuz pushed oil prices above 100 dollars and pressured global stock markets.
Following the downturn on Wall Street, shares in European and Asian markets mostly experienced declines, while crude oil prices continue to trade above 100 dollars under the influence of conflicts in the Strait of Hormuz.
Latest Status in Global Stock Exchanges
European and Asian stocks followed a mostly negative trajectory on Thursday following the decline on Wall Street.
Germany's DAX index fell by 0.2 percent, while Paris's CAC 40 index recorded a slight increase of 0.2 percent.
Rise in Oil Prices
Brent crude oil prices rose sharply by 3.4 percent on Wednesday, exceeding 100 dollars for the first time since July.
Continuing its rise in early Thursday trading, Brent crude traded at 101.52 dollars, while US benchmark crude reached 96.42 dollars.
Strait of Hormuz and Political Statements
Conflicts between the US and Iran continue to negatively affect the flow of oil through the Strait of Hormuz.
US President Donald Trump stated on Wednesday that oil prices likely will not fall until after the US midterm elections.
Trend in Asian Markets
During the Asian session, Tokyo's Nikkei 225 index rose by 0.2 percent, while South Korea's Kospi index lost 0.3 percent in value.
Hong Kong's Hang Seng index dropped by 1.3 percent, and the Shanghai Composite index fell by 0.4 percent.
Wall Street and Sectoral Impacts
On Wednesday, the S&P 500 index had fallen by 0.5 percent, the Dow Jones Industrial Average by 0.8 percent, and the Nasdaq composite index by 0.6 percent.
While all S&P 500 subsectors declined except for the energy sector; Exxon Mobil gained 2.2 percent and Chevron gained 1.9 percent in value.
Inflation Expectations and Other Developments
Market focus on inflation turned to the Producer Price Index data to be released on Thursday and the Consumer Price Index data to be announced on Friday.
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