Oil prices rise, holiday markets unchanged
Oil prices rose to a nine month high in a thin holiday trading. For markets which were open, S&P 500 futures fell and Nasdaq futures edged higher. The dollar index and ten year bonds were unchanged. Bottom-line: risk-hold.
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Oil prices rose to a nine month high in a thin holiday trading. For markets which were open, S&P 500 futures fell and Nasdaq futures edged higher. The dollar index and ten year bonds were unchanged.
Bottom-line: risk-hold.
TODAY’S MAJOR NEWS
No rate rise expected in September
Last week saw equities boosted by mixed economic data, on jobs and inflation, which traders chose to see as good news, not requiring the Fed to raise rates. Nasdaq and the Magnificent Seven tech stocks led the way. Following a “hawkish pause” in June, no change is expected this year. Fedwatch, the market’s gauge for official rates, is pointing to no change in rates at the September 19-20 FOMC meeting and just one-in-three chance of rate hikes by the end of the year. As always, this path is ‘data dependent.’
Oil price rises buoyed by supply cuts
Oil prices rose to a nine month high, at $86 per barrel in a thin holiday trading as traders await production updates from OPEC+, notably Saudi and Russian voluntary cuts. Crude oil inventories fell last week, with increased crude exports and higher refinery utilization rates, according to the Energy Information Administration (EIA). The EIA also forecasts that US shale oil and gas production declined August, adding to concerns of supply tightness. US energy firms reduced the number of oil rigs by seven to 530, their biggest cut since early June, according to Baker Hughes data, its lowest since March 2022.
TODAY’S MAJOR MARKETS
Global equity market’s mixed
- Global markets were mixed today, led by the Nikkei 225 up 0.7%, while the FTSE and DAX were down by 0.2% and 0.1% respectively
- The VIX, Wall Street’s fear index, rose to 13.8
Bonds and dollar unchanged
- 10-year bonds were unchanged 4.17%
- The dollar index was unchanged at 104.2
- Versus the dollar, the Euro and Sterling were up 0.2% and 0.3% respectively, while the Yen was off 0.2%
- Bitcoin found support at $25,900 after recent weakness
Oil continues rally
- Crude oil prices rose 0.5%, to $86.0 per barrel
- Elsewhere commodity markets were closed
Analysis by Arlan Suderman, Chief Commodities Economist: [email protected]
Market outlook by Paul Walton, Financial Writer: [email protected]
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