Brent crude prices fell to USD 91 a barrel on Tuesday after Donald Trump said further military strikes on Iran may not be necessary. This drop eased inflation fears, helping global markets. "The sharp drop in oil prices has given markets some much-needed breathing room," said strategist Dilin Wu.
Brent crude prices fell to around USD 91 a barrel on Tuesday, extending losses after declining nearly 6 percent in the previous session to their lowest level since August, as US President Donald Trump signalled that further military strikes on Iran may not be necessary. Trump's remarks indicated a possible easing of the conflict, following the US midterm election results. The decline in crude oil prices provided some relief to financial markets by easing inflationary pressures. "The sharp drop in oil prices has given markets some much-needed breathing room. It's eased some of the inflation pressure,"
Dilin Wu, a strategist at Pepperstone Group, told Bloomberg. Meanwhile, futures for the S&P 500 index rose 0.2 percent on Tuesday, while those for the Nasdaq 100 were little changed. European stock futures gained 0.9 percent. Investors also remained cautious ahead of the US inflation data for October. Economists expect consumer prices to have risen at a moderate pace, although inflation is likely to remain high enough to keep the Federal Reserve's interest rate decision next month in focus. In India, GIFT Nifty gained more than 0.8 percent, signalling a positive opening for domestic equity markets when trading resumes on Wednesday, as lower crude oil prices lifted investor sentiment.
Indian stock markets remained closed on Tuesday on account of Diwali Balipratipada. In the previous session on Monday, benchmark indices had recovered from early losses to close at their highest levels in more than eight months.