Volkswacht Bodensee - Stocks retreat ahead of US jobs, oil drops on Ukraine hopes

A deal to end the war could ease sanctions on Russian oil, adding to oversupply concerns already weighing on the market.

International oil benchmark Brent dropped below $60 per barrel for the first time since May, while the main US crude contract WTI also declined.

US President Donald Trump said Monday that a deal to end the Ukraine war was closer than ever, after Washington said it offered Kyiv NATO-like security guarantees and voiced confidence Moscow would accept.

"I think we're closer now than we have been ever," Trump told reporters, after he spoke to Ukrainian counterpart Volodymyr Zelensky and a host of European leaders.

European defence stocks slid Tuesday following the update on the talks, analysts said.

"A peace deal between Russia and the Ukraine looks to be back on the agenda but there have already been multiple false dawns this year," noted Derren Nathan, head of equity research at Hargreaves Lansdown.

London and Frankfurt stock markets both slid, while Paris ticked up, after Asian markets closed lower.

Weak UK jobs data strengthened expectations that the Bank of England will trim borrowing costs on Thursday.

The European Central Bank is set to hold interest rates steady this week.

Investors' attention turns to the release later in the day of US November jobs data and the delayed reading for October, which will be followed on Thursday by consumer price index figures.

"From a market perspective, the most important question is whether the report opens the door for more rate cuts in the early part of next year," said Jim Reid, managing director at Deutsche Bank.

He added that a softer labour market could support bets for further Federal Reserve rate cuts.

Worries over the tech sector were also weighing on sentiment, with recent warnings about an AI-fuelled bubble compounded by disappointing earnings last week from Oracle and Broadcom.

Speculation that vast sums invested in artificial intelligence will take some time to make returns, if at all, has also acted as a drag.

Seoul lost more than two percent, while Tokyo, Hong Kong and Shanghai were all down more than one percent.

The yen held gains against the dollar ahead of an expected rate hike by the Bank of Japan on Friday.

- Key figures at around 1050 GMT -

London - FTSE 100: DOWN 0.3 percent at 9,720.34 points

Paris - CAC 40: UP 0.1 percent at 8,131.27

Frankfurt - DAX: DOWN 0.3 percent at 24,169.16

Tokyo - Nikkei 225: DOWN 1.6 percent at 49,383.29 (close)

Hong Kong - Hang Seng Index: DOWN 1.5 percent at 25,235.41 (close)

Shanghai - Composite: DOWN 1.1 percent at 3,824.81 (close)

New York - Dow: DOWN 0.1 percent at 48,416.56 points (close)

Euro/dollar: UP at $1.1760 from $1.1750 on Monday

Dollar/yen: DOWN at 154.89 yen from 155.25

Pound/dollar: UP at $1.3422 from $1.3372

Euro/pound: DOWN at 87.61 pence from 87.87

Brent North Sea Crude: DOWN 1.6 percent at $59.62 per barrel

West Texas Intermediate: DOWN 1.7 percent at $55.85 per barrel

O.Schlaepfer--VB