Oil and data centre stocks sink after US midterms

Business Recorder reported that oil and data-centre shares fell in Asian trading on Thursday after US midterm results shifted expectations around the Iran conflict. Brent crude dropped nearly 9% overnight, moving below $100 a barrel, and was trading at $93.50 in the Asian morning. It has lost about 20% this week.

Investors also sold shares in Asian data-centre companies and equipment suppliers amid expectations of tighter regulation following victories by candidates who opposed data-centre construction in Texas and Georgia. Solar-related shares rallied on expectations of stronger Democratic support for renewables, while the S&P 500 closed 1.6% higher and European shares reached a two-month high. Analysts cited in the report expect a temporary slowdown in AI and data-centre activity, but do not generally expect demand to be impaired.