Asian stock markets experienced mixed results on Monday as Brent crude oil prices remained steady above $104 per barrel following President Donald Trump’s announcement of a plan to purchase diesel from Russia. The proposal has been met with criticism from U.S. lawmakers who are concerned about bolstering Russia’s energy revenues amid its ongoing conflict with Ukraine.
In European markets, Germany’s DAX rose by 0.5% to 25,213.52, France’s CAC 40 increased by 0.3% to 7,826.70, and the UK’s FTSE 100 climbed 0.5% to 10,602.21. Meanwhile, Asian markets had a varied performance, with South Korea’s Kospi falling by 3.7% to 6,384.24 and Hong Kong’s Hang Seng gaining 0.3% to 24,271.20. Shanghai’s Composite Index saw a decline of 0.4% to 3,797.24, while Australia’s S&P/ASX 200 rose by 0.8% to 8,783.20. India’s Sensex dropped 0.8%, and Tokyo’s markets were closed for a holiday.
In the U.S., stock futures edged higher as investors awaited upcoming inflation and retail sales data, as well as quarterly earnings reports from major banks. The previous week had seen gains across major Wall Street indexes.
President Trump stated that the proposed agreement with Russian President Vladimir Putin would begin with an initial supply of over 300,000 tonnes of diesel, with further shipments to follow. He asserted that the plan aims to help reduce fuel prices. However, the proposal has sparked concerns as Russia’s energy revenues continue to fund its military efforts in Ukraine. A bipartisan group of U.S. senators has urged the Trump administration to reconsider the decision.
Trump also mentioned an energy ceasefire agreement between Russia and Ukraine, though details were scant and reports of continued attacks on energy infrastructure cast doubt on its implementation.
Oil prices have remained volatile amid uncertainties surrounding the conflict with Iran and disruptions in global energy supplies. Brent crude saw a slight increase of 0.1% to $104.76 per barrel, while U.S. benchmark crude dipped 0.4% to $91.50.
Amid these developments, U.S. consumers are facing renewed concerns about inflation. A University of Michigan survey indicated that consumers expect inflation to rise to 4.7% over the coming year, up from 4.6% a month earlier. Investors are also closely monitoring corporate earnings for insights into economic resilience despite the challenges of elevated living costs and market uncertainty.