World stocks near records as oil holds below $100

Global equities hovered near record highs on Friday and were on track for a third consecutive week of gains, while benchmark oil prices remained below $100 per barrel ahead of a key weekend that could influence prospects for resolving the Iran conflict, News.Az reports, citing Reuters.

US President Donald Trump expressed confidence that an agreement could soon be reached to end the war and urged the Tehran-aligned Hezbollah group to cease fire as a 10-day truce took effect between Lebanon and Israel.

He also indicated that the next round of US-Iran negotiations could take place over the weekend.

Despite ongoing uncertainty, investors have largely taken an optimistic view of recent developments this month, even as the Strait of Hormuz—through which about a fifth of global oil and gas flows—remains largely closed.

This optimism has kept oil prices below the $100 per barrel mark, although they remain significantly higher than pre-war levels. Brent crude futures fell about 1% on Friday to $98.5 a barrel, while US West Texas Intermediate crude dropped 1.2% to $89.1 a barrel.

In equity markets, MSCI’s world share index, which dropped in March due to the conflict, reached a record high on Thursday and is up 8.5% so far in April.

Commenting on the rally, Bradesco BBI head of macro and equity strategy Ben Laidler questioned whether markets had moved too quickly, noting the disconnect between rising equities and elevated oil prices.

However, he added that investors are forward-looking, with relatively attractive valuations and strong earnings supporting the rally. He said further gains would depend on continued de-escalation in Iran and easing oil prices, alongside strong corporate earnings.

While early US earnings reports have generally been positive, Netflix stood out on Friday after falling 9.6% in premarket trading following a weaker-than-expected second-quarter earnings outlook.

Broader market moves were relatively subdued as traders avoided large positions ahead of the critical weekend, with European STOXX 600 and US S&P 500 futures slightly higher, while Asian stocks closed the week with gains despite earlier dips.

News.Az 

By Nijat Babayev