U.S. stock futures advance as oil retreats after diesel agreement

what happened

U.S. equity futures moved higher at the start of the week, while oil prices declined after President Trump said Russia and Ukraine had agreed to halt strikes on energy facilities. Dow Jones Newswires reported that Nasdaq futures gained 0.3%, Dow Jones Industrial Average futures rose 0.2% and S&P 500 futures added 0.3%. Moscow has not confirmed the arrangement. Trump also said his administration had secured an agreement for Russia to provide substantial diesel volumes to the U.S. and international markets.

The Europe-wide Stoxx 600 climbed 0.44%, Germany’s DAX rose 0.4% and the U.K.’s FTSE 100 added 0.6%. Commerzbank and Deutsche Bank gained 1.6% and 1.4%, respectively. HSBC, Barclays and Lloyds advanced 2%, 1.55% and 1.5%.

Brent crude fell 0.6% to $104.90 a barrel, while WTI declined 0.8% to $91.10. Brent had risen after an attack on Riyadh’s international airport before giving up the gain. Saudi Arabia’s General Authority of Civil Aviation said Saturday’s strike on King Khalid International Airport killed 12 people and injured 309. Oil-tanker attacks also continued during the weekend.

ING said refined-product prices need more stable Middle East conditions before a larger drop is likely. The firm’s analysts said disrupted oil routes from the region had sharply increased tanker freight rates, which could keep product prices high. The U.S. Treasury market is shut Monday for Columbus Day, and Japan’s bond market is also closed. Investors will turn to U.S. inflation figures on Wednesday and Thursday, followed by the start of third-quarter earnings from major banks on Tuesday. The U.K. 10-year gilt yield fell 3.9 basis points to 5.417%; the 10-year German Bund yield dropped 2.7 basis points to 3.462%, and the 10-year French OAT yield declined 2.7 basis points to 4.836%. New York gold futures slipped 0.2% to $4,209.50 a troy ounce, while the DXY dollar index was unchanged at 102.199.

why it matters

The report links energy-supply risks and potential diesel flows from Russia with movements in crude, inflation-sensitive bonds and equities.

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