Global stock markets mixed as crude oil prices fall on OPEC+ supply boost

Time of India

05-05-2025

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Global share markets showed mixed results in light trading Monday, as oil prices dropped following the OPEC+ alliance's announcement to increase production. Several major markets, including those in Britain and much of Asia, were closed for holidays.
US futures
fell, with the S&P 500 down 0.6% and the Dow Jones Industrial Average off by 0.5%.
In Europe, Germany's DAX added 0.4% to 23,181.61, while France's CAC 40 slipped 0.4% to 7,737.21.
Oil prices dropped sharply. US benchmark crude lost as much as 4% early in the day, later recovering slightly to trade down $1.15, or 2%, at $57.14 per barrel.
Brent crude
, the global benchmark, dropped $1.14 to $60.15 per barrel.
Over the weekend, OPEC+—a coalition of eight major oil-producing nations—announced it would boost output by 411,000 barrels per day starting June 1.
The decision is attributed to 'strong fundamentals,' according to the group, though analysts speculate it may also be aimed at currying favour with US President Donald Trump ahead of his planned visit to the Middle East later this month.
'Washington wants cheap energy, and Gulf producers still lean on US security guarantees; the White House bears down, they listen,' said Stephen Innes of SPI Asset Management. 'In that sense the US president has become an unofficial swing vote inside OPEC+,' he added.
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Oil prices have declined nearly 20% over the past three months, reflecting growing concern about the global economic impact of Trump's trade policies. The US president has repeatedly cited lower gas prices as a political achievement.
US crude is now down about 17% for the year. AAA reports that gasoline averages $3.17 per gallon, compared to $3.66 a year ago. However, the price drop is pressuring producers, with many nearing unprofitable levels.
Asian markets saw limited activity due to holiday closures. Australia's S&P/ASX 200 dropped 1% to 8,157.80, while Taiwan's Taiex slid 1.2%.
Currency markets also saw some movement. The US dollar slipped to 144.15 Japanese yen from 144.71 yen, while the euro rose to $1.1329 from $1.1306.
On Friday, Wall Street wrapped up its longest winning streak since 2004, with nine consecutive days of gains. Investors were buoyed by a better-than-expected April jobs report and renewed hopes that tensions between Washington and Beijing may ease.
The S&P 500 jumped 1.5%, the Dow rose 1.4%, and the Nasdaq also added 1.5%. Despite recent gains, the S&P 500 remains down 3.3% year-to-date and is still 7.4% below its February peak.
Technology stocks led the rally—Microsoft climbed 2.3% and Nvidia gained 2.5%. Apple, however, dropped 3.7% after projecting a $900 million impact from US tariffs.
Financials also posted gains: JPMorgan Chase rose 2.3% and Visa added 1.5%.
April saw employers add 177,000 jobs, a slowdown from March but still above economists' forecasts. With ongoing trade tensions, job growth is being closely monitored for signs of broader economic stress.
The US GDP shrank at a 0.3% annual pace in the first quarter, weighed down by a surge in imports as companies rushed to beat looming tariffs. Many firms have pulled back financial forecasts due to uncertainty over tariff impacts and their potential to squeeze both corporate margins and consumer spending.
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