European shares gain after a retreat in Asia as Iran war worries push oil prices higher
TOKYO (AP) — European shares opened with gains after a retreat Tuesday in Asia. Oil prices climbed after diplomatic efforts to end the Iran war once again appeared to stall.
France’s CAC 40 gained 0.1% to 8,153.65, while the German DAX edged up 0.1% to 24,125.57. Britain’s FTSE 100 added 0.2% to 10,345.03.
The future for the S&P 500 slipped 0.1% while that for the Dow Jones Industrial Average gained 0.2%.
Despite a tenuous ceasefire, the Strait of Hormuz remains effectively closed. Much of Asia, including resource-poor Japan, relies on that route for its oil shipments.
Japan’s benchmark Nikkei 225 fell 1.0% to finish at 59,917.46 after the central bank opted to keep its key interest rate unchanged at 0.75%.
The Bank of Japan said that while the economy was still growing moderately it was expected to slow as the war pushes for crude oil and other products higher. The vote by its monetary policy board at 6-3 was not unanimous. Pressures have been growing for Japan to gradually raise interest rates after keeping them near or below zero for years to combat deflation.
“There are various risks to the outlook,” it said in a statement. “For the time being it is necessary to pay particular attention to the impact of the future course of the situation in the Middle East.”
Elsewhere in Asia, South Korea’s Kospi edged up 0.4% to 6,641.02.
Hong Kong’s Hang Seng dipped nearly 1.0% to 25,679.78, while the Shanghai Composite shed 0.2% to 4,078.64.
Australia’s S&P/ASX 200 lost 0.6% to 8,710.70.
The price for a barrel of Brent crude to be delivered in June climbed $2.47 to $110.70. Brent to be delivered in July, which is where more of the trading is happening in the oil market, rose $2.19 to $103.88 per barrel.
Brent prices were at about $70 per barrel before the war and have briefly shot to nearly $120. Benchmark U.S. crude added $2.18 to $98.55 a barrel.
On Monday, the S&P 500 inched up 0.1% to another all-time high and the Dow industrials dipped 0.1%. The Nasdaq composite index rose 0.2%.
The U.S. Federal Reserve, European Central Bank, and Bank of England will also be announcing interest-rate decisions this week.
In currency trading Tuesday, the U.S. dollar inched up to 159.53 Japanese yen from 159.42 yen. The euro cost $1.1701, down from $1.1720.
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