Global Markets Rise as Oil Prices Ease

TDT | Manama

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Global stock markets strengthened on Tuesday as falling oil prices eased concerns over energy-driven inflation and rising government borrowing costs.

On Wall Street, the technology-heavy Nasdaq gained 0.8 percent after reaching a record high on Monday, supported by continued enthusiasm over artificial intelligence. The gains helped lift European markets, while most Asian equities also advanced.

Brent crude fell 1.8 percent to $98.50 a barrel, slipping below the $100 mark, while West Texas Intermediate declined 1.4 percent to $88.08. The retreat came as Gulf oil exports moved closer to pre-war levels, easing some supply concerns.

However, uncertainty over the Middle East crisis continued to weigh on markets. Higher energy costs have increased inflation pressures, while elevated government bond yields have raised concerns about mounting public debt.

The AI investment boom is adding another layer of pressure, with major technology companies increasingly turning to debt to finance data centres, servers and chips. Borrowing by Google, Amazon and Microsoft reportedly reached around $500 billion in the first nine months of the year.

US equities remained broadly higher, with the Dow gaining 0.7 percent and the S&P 500 rising 0.9 percent. European markets also closed higher, with Frankfurt's DAX up 0.8 percent, Paris's CAC 40 gaining 0.5 percent, and London's FTSE 100 advancing 0.4 percent.