Oil prices slip on delayed talks but stocks rise as coronavirus cases slow
Oil prices dipped on Monday after talks between Saudi Arabia and Russia to cut output were postponed, while a slowdown in coronavirus deaths and cases saw stocks jump.
Brent crude fell as much as $4 overnight after Saudi Arabia and Russia delayed the negotiations, which were expected to go ahead today, to Thursday. Brent crude was down 0.88 per cent this morning, while US traded West Texas Intermediate was 1.52 per cent lower.
Equity investors, however, were encouraged as the death toll from coronavirus slowed across the European countries that have been the hardest hit by the outbreak including France, Spain and Italy.
In Asia, Japan’s Nikkei rose 4.61 per cent while South Korea’s KOSPI index climbed 3.45 per cent and Hong Kong’s Hang Seng index was up 2.41 per cent.
“With a very light calendar globally today, there is enough momentum to keep the equity rally running through the course of the day and also into European time,” said Jeffrey Halley, Senior Market Analyst, Asia Pacific, OANDA.
“All bets are off after that although I could see a couple of days of positive sentiment ahead, especially if those mortality rates keep falling.”
However, the number of new coronavirus cases jumped in China on Sunday while the number of asymptomatic cases also increased.
“Focus in markets will now turn to the path out of lockdown and to what extent containment measures can be lifted without risking a second wave of infections,” National Australia Bank analyst Tapas Strickland said.