China stocks may give back Monday's gains as oil slides

what happened

Shanghai's benchmark snapped a two-day slide on Monday, when it had shed more than 80 points or 2.2 percent, and closed at 3,638.03 after a 1.08 percent gain, according to TradingView, which cites RTTNews and dpa-AFX. Shenzhen's composite index added 1.94 percent to finish at 2,097.22, with gains led by technology, finance and utilities.

Oil took the spotlight. West Texas Intermediate for December delivery dropped $7.76, or 7.45 percent, to $96.36 a barrel on reports that talks to end the US-Iran conflict are under way. Energy shares followed, with the Philadelphia Oil Service Index down 5.1 percent and the NYSE Arca Oil Index off 4.3 percent.

On Wall Street, the Dow edged up 0.41 percent to 51,983.98, while the Nasdaq lost 1.07 percent to 25,164.32 as worries about artificial intelligence hit tech again. The S&P 500 slipped 0.51 percent to 7,541.40. Separately, the ISM reported that US manufacturing activity grew more than expected in October.

why it matters

Oil's slide on settlement talk removes some risk premium from crude, which keeps energy equities under pressure. Tech weakness in the US continues to weigh on indexes, while the global backdrop for Asian trading looks mixed, with lower oil offsetting softness in technology shares.

market impact

Oil and energy stocks: pressure from reports of US-Iran talks

• ▼WTI crude pressure down — reports of settlement talks reduce the risk premium in prices
• ▼US energy stocks pressure down — follow crude lower after the oil sell-off

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