UK economy faces recession if strait of Hormuz remains closed, EY warns - business live
Rolling coverage of the latest economic and financial news European stocks and bonds are rallying this morning as the oil price falls – the Stoxx Europe 600, which tracks the biggest companies on the continent, is up 0.5%. The UK’s blue chip FTSE 100 index is however flat this morning, with shares in the likes of BP and Shell down 2.8% and 2% respectively on the back of a weaker oil price.…
European stocks and bonds are experiencing a surge as the oil price declines, leading to a rise in the Stoxx Europe 600 index by 0.5%. However, the UK's FTSE 100 index remains stagnant, with shares in major oil companies like BP and Shell plummeting by 2.8% and 2%, respectively, due to a weaker oil price. Over the weekend, President Trump mentioned that discussions to reach a peace agreement with Iran might commence today, causing Brent crude to dip towards $83 per barrel.
This development alleviates inflation concerns and may also temper bond yields, which had surged significantly the previous week, particularly at the long end, where 30-year US Treasury yields reached their highest point in 19 years.
The financial markets are bracing for another eventful week, as they grapple with a deluge of fresh economic data and upcoming earnings reports from major tech companies. The US labor market data, accounting for 20% of the S&P 500, will be released alongside earnings announcements from companies such as Palantir and SanDisk. SpaceX will unveil its inaugural earnings report on Tuesday.
Investors are keen to gauge the end of the tech sell-off, the future trajectory of the yen following unprecedented multilateral intervention to support the currency, and the impact of US Treasury yields on market dynamics.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
