The price of Brent Crude continued its steady ascent on Tuesday, touching $82.20 per barrel before receding to hover around the $81.80 mark. The commodity’s choppiness follows the decision of major oil producers not to increase production despite pressure from US President Donald Trump.
The news of oil’s rise – hitting fresh four-year highs for the second consecutive day – increased fears of a sustained surge in jet fuel costs.
Meanwhile in Tokyo, the Nikkei index, reopening after a public holiday on Monday, inched higher, breaching the 24,000 level for the first time since February 2018. Bank of Japan governor Haruhiko Kuroda said that interest rates could still rise to combat inflation, which currently stands at 1.12% – though it is still some way off the 2% target.
The dollar stood firm yesterday ahead of an expected 0.25% interest rate rise by the US Federal Reserve on Wednesday.
The pound and euro rose against the dollar on Tuesday after Mario Draghi, the European Central Bank president, hinted at the withdrawal of stimulus due to a growing European jobs market. The euro was up 19 points against the dollar to $1.1767 while sterling gained 63 points to rise to $1.3183.
In New York, the S&P 500 dipped 3 points on Tuesday, closing the day at 2,915.56. The Dow Jones Industrial Average also slipped 69 points to 26,492.21, while the tech-heavy NASDAQ gained 14 points to settle at 8,007.47.
The eurozone markets seemed to build momentum early in the session, but were flat by the close of day. The exporter-heavy DAX gained 23 points 12,374.66 as the Euro Stoxx 50 rose by 9 points to 3,419.78.
In London, the FTSE 100 gained 46 points to rise to 7,507.56.