OIL ABOVE $101: MARKETS TURN CAUTIOUS
Asian stocks slipped as surging oil prices revived fears that inflation could stay higher for longer and push global interest rates up.
ASIAN MARKETS UNDER PRESSURE
• MSCI Asia Pacific Index: -0.8%
• Hang Seng: -1.4%
• Nikkei futures: -0.8%
• ASX 200: -1.5%
• Shanghai Composite: -0.3%
OIL IS BACK IN THE SPOTLIGHT
Brent climbed above $101 a barrel, with the US-Iran conflict showing little sign of easing. Markets are increasingly worried about disruption to energy supplies from the Gulf.
THE FED NOW HAS A BIGGER PROBLEM
US 10-year Treasury yields held near 4.84%, while markets put the odds of a 25 bps Fed hike next week at around 62%.
Friday’s US CPI report could be the next major market trigger.
CORPORATE WATCH
• Apple: New CEO John Ternus says the iPhone Duo will improve on rival foldables.
• Google: Plans to invest €13 billion in AI infrastructure in Finland.
• Amazon: Raised $5.8 billion through its first sterling bond sale.
• Dell: Raised $5 billion as demand for AI servers continues to drive growth.
GOLD RISES, YEN STRENGTHENS
• Gold: $4,407.90/oz
• Yen: 153.40/$
• Bitcoin: $78,317
ALL EYES ON US INFLATION
Oil is climbing. Bond yields are elevated. Rate hike bets are rising.
The next big question: Will US CPI give markets another shock?