Markets Respond as Oil Reaches $95 Amidst Rate Concerns
Global stocks wavered as Brent crude oil reached $95 a barrel, the highest since last November, intensifying inflation fears. This rise comes as a result of Saudi Arabia and Russia collaborating to limit supplies, ensuring a price boost. Consequently, central banks face pressure to address inflation without harming their respective economies.
This week will witness several central bank decisions, with the Federal Reserve on Wednesday, followed by the Bank of England and the Bank of Japan on Thursday and Friday respectively. With tech shares already showing less appeal due to potential long-term higher rates, the focus is on whether further rate hikes are in the horizon.
Oil giants, including TotalEnergies SE, BP Plc, and Shell Plc, stood out in the European market. Meanwhile, in the US, the futures of major equity indices remained relatively stable.
The tech-driven Nasdaq 100 is experiencing a decline, with a decrease of about 3.9% since mid-July, reflecting a bearish sentiment among investors. On the stock front, Dell Technologies Inc. showed promise after an upgrade from Daiwa Securities, while Bitcoin’s price surge over $27,000 positively impacted cryptocurrency-associated stocks like Coinbase Global Inc.(COIN) and Marathon Digital Holdings Inc. (MARA)
Traders now anticipate the Federal Reserve’s economic forecast, especially in terms of interest rate decisions. The current forecast suggests rates will remain unchanged.
Key events to watch this week include:
- A meeting between Ukrainian President Volodymyr Zelenskiy and US President Joe Biden.
- Economic insights from the OECD, Eurozone, and more.
- Central bank meetings and decisions across the US, Canada, UK, and Japan.
Market Movements at a glance:
- S&P 500, Nasdaq 100, and Dow Jones Industrial Average futures saw little change.
- Currency movements include a rise for the euro and the British pound, while the Japanese yen remained steady.
- Cryptocurrencies like Bitcoin and Ether experienced a slight uptick.
- The 10-year Treasury yields witnessed variations across countries.
- Crude oil prices increased, with West Texas Intermediate crude at $92.68 a barrel, while gold futures also saw an increase.