Equity Market Handover Oil fuelled bounce risks being torpedoed

Stock market snapshot as of [13/6/2019 3:44 PM]

After a session-and-a-half consolidation of the recent rebound, investors may be in the mood to add more upside, with less emphasis on ‘quality’
Thursday’s early-session swing off lows was not entirely down to a sudden spike in oil prices, but it played a large part
Both U.S. WTI and Brent benchmark crude oil futures contracts surged almost 5% higher and were last trading up around 3% on the day apiece
It follows reports that two tankers were attacked near the Strait of Hormuz; one by some form of projectile “shell”— some reports cited a torpedo—the other suffering three detonations
The attacks follow incidents around a month ago when four vessels were sabotaged in the same region. Then, U.S. authorities pointed the finger at Iran, citing naval mines
Before news suggesting 35% of the world’s oil supply—the amount shipped through the Strait daily—could be put in jeopardy, risk appetite was thin on the ground
Hong Kong protesters appear to be gearing up for more confrontations, whilst Greater China itself and the U.S. seem no nearer to resolving their trade dispute
Higher than forecast U.S. weekly jobless claim are keeping the monetary easing narrative going

Corporate News

Oil-related stocks are predictably leading in Europe, though it’s worth noting that oilfield contractor stocks saw the most interest after they were dumped particularly hard on Wednesday
The high-yielding residential and commercial property sector, a ‘safety’ play, rose the most
Europe’s tech shares rose 0.5% overall with software strongest. Hardware stocks were dragged lower by telecom equipment makers Nokia and Ericsson
Shipping shares surged on the S&P 500 as the tanker attack could inflate shipping rates. Frontline, the owner of one of the attacked tankers jumped as much as 11%

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