Oil prices have been declining for four consecutive days. Natural gas prices have fallen to a two-month low

On Wednesday, the US stocks closed with solid gains: the Dow Jones (US30) rose by 1.14%, the S&P 500 (US500) increased by 0.78%, and the tech-heavy Nasdaq (US100) closed up 0.61%. The US equities extended their gains on Wednesday following reports that the US would agree to a trade deal with the EU, building on previous momentum from a deal with Japan. Reports indicate that the US is close to reaching an agreement to lower tariffs on EU goods from 30% to 15%, aligning with the measures taken with Japan and reinforcing expectations that aggressive tariffs will be scaled back by August. Optimistic corporate earnings also supported the indices.

European stock markets traded higher yesterday. Germany’s DAX (DE40) rose by 0.83%, France’s CAC 40 (FR40) ended up 1.37%, Spain’s IBEX35 (ES35) gained 0.19%, and the UK’s FTSE 100 (UK100) closed 0.42% higher. European stocks ended Wednesday with a strong rebound, breaking a three-day losing streak, amid expectations that the US might agree to lower tariff rates after reaching a new trade deal with Japan. Progress on automotive tariffs, which heavily impact car manufacturers, drove gains in the shares of BMW, Stellantis, Mercedes-Benz, and Volkswagen, rising between 4% and 9%. Additionally, UniCredit jumped 3.5% after releasing its earnings, although the bank confirmed it had abandoned its planned acquisition of Banco BPM due to opposition from Rome.

WTI crude oil prices fell to $65 per barrel on Wednesday, marking a fourth straight day of declines, as investors focused on US trade negotiations. Treasury Secretary Scott Bessent said he would meet with Chinese officials in Stockholm next week to discuss an extension of the trade truce, possibly including Chinese purchases of Russian and Iranian oil under sanctions. Meanwhile, US government data showed crude inventories fell by 3.17 million barrels last week, exceeding expectations. Despite the sharper-than-expected inventory drop, oil prices remain under pressure due to concerns that ongoing tariff tensions could weaken global demand, even as OPEC+ increases production.

The US natural gas prices fell by more than 5% to below $3.10 per MMBtu, the lowest level since April 22, pressured by near-record production levels and expectations for milder weather than previously expected. Despite summer heat, analysts expect record output to continue supporting robust storage replenishment. Current inventories are already 6% above seasonal norms.

Asian markets mostly rose yesterday. Japan’s Nikkei 225 (JP225) jumped by 3.51%, China’s FTSE China A50 (CHA50) increased by 0.30%, Hong Kong’s Hang Seng (HK50) gained 1.62%, and Australia’s ASX 200 (AU200) posted a 0.69% rise.

On Tuesday, the Hang Seng Index closed at 25,538, marking its fourth consecutive gain and reaching its highest level in nearly four years. The rally was driven by broad sectoral gains and optimism ahead of a scheduled US-China meeting in Stockholm next week, the third round of talks aimed at extending the tariff truce. Bullish sentiment was further fueled by reports that daily trading volume on Chinese stock markets surged to a nearly five-month high, while margin financing reached its highest level in nearly four months. Meanwhile, Beijing recently approved the construction of a massive hydroelectric power plant in Tibet.

Stocks in Singapore rose to 4,252 in early Thursday trading, posting their 14th consecutive session of gains, following Wall Street’s rally on Wednesday after the US reached trade deals with the EU. Data released Wednesday showed that overall inflation in June remained at its lowest level since February 2021, with core inflation steady at 0.6%, below expectations and within the Monetary Authority of Singapore’s annual target range of 0.5% to 1.5%. These solid figures followed last week’s data showing stronger-than-expected Q2 GDP growth and the fastest export growth in 11 months.