LONDON: World oil prices jumped on Monday on fresh moves by China to boost its economy and as traders tracked an uncertain future for Syria and the wider crude-rich Middle East.

Major stock markets diverged as investors reacted to political crises in South Korea and France, and tracked the perspectives for interest rate cuts. Gold, seen as a haven investment, gained around one per cent.

“The week has kicked off on a largely upbeat tone following the welcome announcement that Chinese authorities plan to enact further stimulus over the year ahead,” noted Joshua Mahony, analyst at traders Scope Markets.“This shift has already fuelled sharp gains in key assets, with the Hang Seng surging 2.8pc and commodities like copper, zinc, iron ore, and palladium rallying on expectations of increased demand.”

Oil prices rose around 2pc as traders tracked developments in Syria after president Bashar al-Assad fled the country over the weekend as Islamist-led rebels swept into Damascus.

Investors also reacted to developments in China where President Xi Jinping and other top leaders said on Monday they would adopt a more “relaxed” approach to monetary policy as they hashed out plans to boost the economy next year.

Published in Dawn, December 10th, 2024