NEW YORK, Aug 10 — Oil prices rose to a multi-month peak Wednesday in the wake of Opec supply cuts while global stocks were mixed following disappointing China data.

China slipped into deflation for the first time in more than two years in July, official data showed, as slowing domestic spending weighs on the post-Covid economic recovery.

The data came on the heels of lacklustre China trade figures on Tuesday. An extended period of disappointing indicators out of Beijing this year has ramped up pressure on authorities there to provide much-needed support to the economy.

However, while leaders have made a number of pledges in recent weeks to introduce stimulus — particularly for the property sector — there have been very few concrete moves save for some small interest rate cuts by the People’s Bank of China.

Observers warned that the headline-grabbing bazooka officials have unleashed in the past is unlikely owing to the country’s huge debt pile and concerns about an already weak yuan.

Despite the anaemic China figures, crude oil prices vaulted higher with European benchmark Brent futures jumping 1.6 per cent to US$87.55 a barrel, its highest reading since January.

US benchmark West Texas Intermediate rose by a similar percentage to finish at its highest level since November 2022.

Production limitations set by the Opec + exporters "are continuing to offset concerns over demand,” said Fawad Razaqzada, market analyst at Forex.com.

Analysts have also cited the retreat in the dollar as a supporting factor for oil prices. Crude is denominated in the US currency.

Large tech shares led US stock indices lower Wednesday, with Amazon, Facebook parent Meta and Netflix all falling 1.5 per cent or more.

Investors have been cautious ahead of Thursday’s closely watched consumer price index data in the United States, which is seen as influential in Federal Reserve monetary policy.

Meanwhile, European bank shares gained one day after sliding when Italy imposed a windfall tax on lenders and owing to concerns over the health of the sector in the United States.

The rebound came as the government limited a windfall tax to 0.1 per cent of assets.

The sector had shed around US$10 billion Tuesday on an initial announcement of a plan by the far-right government of Giorgia Meloni to take 40 per cent of "surplus profits” before the finance ministry stepped in to clarify that the scope of the tax would be limited and "preserve the stability of banking institutions” and calm a market storm.

Wednesday saw the sector bounce back strongly on the Milan bourse, with Intesa Sanpaolo adding 2.3 per cent, rival UniCredit 4.4 percent and Banco BPM 5.4 at the close.

Key figures around 2040 GMT

New York - Dow: DOWN 0.5 per cent at 35,123.36 (close)

New York - S&P 500: DOWN 0.7 per cent at 4,467.71 (close)

New York - Nasdaq: DOWN 1.2 per cent at 13,722.02 (close)

London - FTSE 100: UP 0.8 per cent at 7,587.30 (close)

Frankfurt - DAX: UP 0.5 per cent at 15,852.58 (close)

Paris - CAC 40: UP 0.7 per cent at 7,322.04 (close)

EURO STOXX 50: UP 0.7 per cent at 4,317.33 (close)

Tokyo - Nikkei 225: DOWN 0.5 per cent at 32,204.33 (close)

Hong Kong - Hang Seng Index: UP 0.3 per cent at 19,246.03 (close)

Shanghai - Composite: DOWN 0.5 per cent at 3,244.49 (close)

Euro/dollar: UP at US$1.0975 from US$1.0956 on Tuesday

Pound/dollar: DOWN at US$1.2720 from US$1.2748

Euro/pound: UP at 86.26 from 85.94 pence

Dollar/yen: UP at ¥143.69 from ¥143.38

Brent North Sea crude: UP 1.6 percent at US$87.55 per barrel

West Texas Intermediate: UP 1.8 per cent at US$84.40 per barrel

— AFP