Global shares mostly lower as oil rises and markets await Trump-Xi talks

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TOKYO (AP) — Global shares were trading mostly lower Thursday, as investors tried to digest the recent swings in oil prices and the U.S. bond market.

France's CAC 40 shed nearly 0.8% to 8,061.10 in early trading, while the German DAX declined 0.9% to 25,183.19. Britain's FTSE 100 inched down 0.1% to 10,693.15. U.S. shares were set to drift lower with Dow futures down 0.4% to 51,669.00. S&P 500 futures dropped 0.6% to 7,725.75.

Japan's benchmark Nikkei 225 gained 0.8% to finish at 65,513.99, as some chipmakers got a boost from the recent interest in artificial intelligence. Australia's S&P/ASX 200 fell 0.7% to 8,702.00.

Hong Kong's Hang Seng lost 0.3% to 24,761.13, while the Shanghai Composite dipped 1.2% to 3,888.37. Trading was closed in South Korea for the Chuseok autumn harvest holiday.

In energy trading, benchmark U.S. crude rose 2.35% to $94.33 a barrel. Brent crude, the international standard, gained 2.77% to $106.94 a barrel.

The price for a barrel of Brent remains much higher than the roughly $72 it cost before the war with Iran began and worries are running high that the war with Iran will keep oil bottled up in the Middle East for a long time. Talks are continuing with mediators between U.S. and Iranian officials, but nothing concrete has come from it yet.

Investors are also closely watching for what might come of the talks between Presidents Donald Trump and Xi Jinping later in the global day at the White House. A lot is likely to be discussed, including trade, the war in Iran and AI. Some analysts are not too optimistic about seeing major agreements.

U.S. inflation has remained so stubbornly high that the Federal Reserve raised its short-term interest rate last week for the first time in three years. Fed Gov. Michael Barr said in a speech this week that further hikes “are likely to be needed” to get inflation to the Fed’s 2% target.

Although the Bank of Japan recently raised its benchmark interest rate to stem the slide in the Japanese yen, the move was largely figured in for weeks. And so the yen hasn't really bounced back. A weak yen works as a negative for oil-importing Japan when oil prices are soaring.

In currency trading, the U.S. dollar edged up to 158.37 Japanese yen from 158.30 yen. The euro was unchanged at $1.1388.

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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama