Stock markets edgy, oil rises

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1 per cent

Stocks were on tenterhooks and oil prices rose in choppy trade on Tuesday.

Asia shares were ​up on Tuesday in a catch-up rally to global counterparts. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1 per cent, while Nikkei added 0.8 per cent. ​ Hang Seng Index rose 1.4 per cent.

EUROSTOXX 50 futures similarly slipped 0.9 per cent and FTSE futures edged 0.8 per cent lower.

In commodities, Brent crude futures were up 4.2 per cent to $104.21 a barrel, reversing some of their 10 per cent decline ​from Monday.

Elsewhere, U.S. Treasury ‌yields pushed higher and the dollar regained lost ground, in a retracement of the relief rally that swept markets overnight after the country’s president gave more time for Iran to reopen the Strait of Hormuz within 48 hours, citing “productive” talks Tehran.

Much uncertainty remained as the world continues to grapple with an energy shock while Iran denied that it ​had engaged in negotiations with the U.S.

The underlying situation is still incredibly fragile or flammable, said IG market analyst Tony Sycamore.

It doesn’t seem ​like all of the parties are on the same page. Trump can talk all he likes, but the Strait (of ⁠Hormuz) is closed and it’s staying closed until all the Iranians get on the same page, and that’s where we’ve got a problem, he said.

But U.S. futures turned lower after the country’s stock market closed higher in the overnight cash session. Nasdaq futures were down 0.6 per cent, while S&P 500 futures shed 0.5 per cent.