“We expect a relatively market-friendly U.S.-China deal,” Bank of America Merrill Lynch global economist Ethan Harris said in a note, according to a Reuters report. “In our view, market and political concerns will constrain future fights. Think ‘skirmishes’ rather than ‘major battles.’”
Oil prices edged lower on Monday, but concerns over global supplies kept prices well supported.
Brent crude oil futures were at $71.46 a barrel at 0233 GMT, down 9 cents, or 0.1 percent, from their last close, having hit their highest since November 12 on Friday at $71.87.
U.S. West Texas Intermediate (WTI) crude futures were at $63.63 per barrel, down 26 cents, or 0.4 percent, from their last settlement.
“I would expect oil to trade in a relatively tight band around $70 per for the time being,” Virendra Chauhan, oil analyst at Energy Aspects in Singapore told Reuters, pointing to mixed signals on supply from the United States and OPEC and its allies.
“Leading edge indicators on U.S. supply suggest activity levels are stepping up which is supportive for strong production growth in the second half,” said Chauhan
Middle East markets
Abu Dhabi’s index gained 2.4 percent on Sunday as First Abu Dhabi Bank (FAB) surged by almost 5 percent after it obtained regulatory approval to increase its foreign ownership limit.
Dubai’s index was mainly flat with Emaar Properties’ shares down 1.2 percent.
Saudi Arabia’s index dropped 0.4 percent with Al Rajhi Bank down 0.6 percent and Samba Financial Group down 1.3 percent.
Qatari stocks were down 0.2 percent, pressured by a 0.9 percent drop in market heavyweight Industries Qatar and a 1.3 percent fall in Qatar Insurance Co.
Egypt’s blue-chip index EGX30 dropped 0.2 percent, Kuwait’s premier market index edged 0.1 percent lower while Oman’s index added 0.2 percent and Bahrain’s index gained 0.5 percent.
The dollar index, which measures the greenback against a basket of six major currencies, was 0.1 percent weaker at 96.863.
Gold prices fell to a more than one-week low on Monday.
Spot gold edged 0.2 percent lower to $1,288.08 per ounce as of 0330 GMT, having touched $1,286.44, its lowest since April 5, earlier in the session. U.S. gold futures fell 0.3 percent to $1,291 an ounce.
(Reporting by Gerard Aoun; Editing by Mily Chakrabarty)
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