GLOBAL MARKETS-Global stocks stall, oil ticks up as investors await Mideast peace signals

Global shares paused on Wednesday after ​a four-day winning streak as oil prices drifted higher while investors ‌awaited ​details on peace efforts in the Middle East. Hopes of improving crude supplies have weighed on oil prices for most of this week. A sustained resumption of oil flows through the Strait of Hormuz would help significantly to keep inflation in check, which in turn would impact the global outlook for ‌interest rates.

However, caution persists as similar hopes have been quickly dashed in the past. US President Donald Trump said talks with Iran in New York had made progress, but then threatened to "annihilate" the country if a deal was not reached. "We've been through a series of starts and stops like this," said Cole Smead, CEO and portfolio manager at Smead Capital Management.

"We're in a pretty momentum-dominated market. I don't think most ‌people feel comfortable stepping in the way of headlines." The pan-European STOXX 600 index slid 0.42% to 640.16 points, while Brent crude futures rose 0.62% to $98.86 per barrel.

An MSCI index of ‌global stocks dipped 0.11% after four consecutive days of gains. "We're probably nearing a point where it's in both sides' best interests to de-escalate the conflict and find a way to move forward," said Brock Weimer, analyst, investment strategy, at Edward Jones.

Iranian President Masoud Pezeshkian addresses the UN General Assembly later on Wednesday and markets are alert to reports he might hold talks with Trump. On Wall Street, futures tracking the benchmark S&P 500 and the tech-heavy Nasdaq-100 were down 0.07% and 0.27%, respectively.

ASIA RIDES AI ⁠WAVE In Asia, ​stocks rose as consumer hunger for AI apps continued ⁠to buoy tech stocks.

Renewed buzz over AI helped South Korean stocks gain 0.9%, with Samsung up nearly 1%, while Taiwan's benchmark firmed 0.8% to near all-time peaks. The data hardware sector has been buoyed by strong consumer take-up of Meta's Muse agent, ⁠which has topped US app download charts in the past two weeks.

Analysts are now keen to see how a similar product from Alphabet's Google Labs, known as CC, will fare with consumers. Chinese President Xi Jinping arrives in Washington ​later in the day amid speculation that a trade truce between the two countries will be extended, and there could be cooperation over AI.

Japanese markets were closed for a holiday, but ⁠Nikkei futures were trading at 66,425, about 1,400 points above where the cash Nikkei closed on Friday. "We expect a strong reopening in Japan tomorrow, with another move lower in crude, calm conditions in rates and Treasuries," said Chris Weston, head of research at ⁠broker Pepperstone.

"Memory ​stocks have taken the leadership baton, backed by another strong session for semis, which have recorded a sixth consecutive day of gains." Also of note was demand for SoftBank's $10 billion-plus debt deal which has reportedly drawn more than $20 billion in indications of interest. That would make it one of the largest junk bond deals ever.

The 10-year yield rose 1.28 basis points to 4.9798%, close to the 5.0% ⁠pain barrier. Richmond Fed President Tom Barkin and Boston Fed President Susan Collins on Tuesday both voiced support for last week's rise in interest rates given concerns about inflation.

The prospect of higher rates ⁠helped the dollar hit multi-week highs versus the euro, ⁠sterling and Canadian dollar. The euro was left pinned at $1.1410, near a two-month low. Analysts said that a call from Trump to ban US diesel exports was potentially bad news for European inflation since the zone relied heavily on US shipments of the fuel.

The dollar was firmer against the yen at ‌157.93, with speculators wary of drawing more ‌Japanese intervention on any push past 160.00.