Asian shares bounce, others cautious as oil rises
Brent reaches US$96.45 a barrel, having climbed almost 10% last week, while US crude rises to US$91.85.
Asian stock markets surged on Monday, buoyed by a strong US jobs report that indicated positive global growth. Despite concerns about potential interest rate hikes, the price of oil edged upward following the US and Iran's attacks on ships in the Gulf. Tehran announced a restricted zone outside the Strait of Hormuz, while Iran's Islamic Revolutionary Guard Corps launched ballistic missiles at US Navy ships.
As a result, Brent crude oil rose 0.2% to $96.45 a barrel, up nearly 10% in the previous week. US crude also increased by 0.4% to $91.85 a barrel. The inflationary impact from the energy sector raises expectations for the US Consumer Price Index (CPI) reading this week and influences the European Central Bank's decision to raise rates, which is expected to be 2.75% on Thursday.
Futures markets suggest a 75% probability of another hike to 3.0% by December. The Federal Reserve is currently pricing a 58% chance of a rate hike in September and a 70% chance in October. Central bank watchers, such as Bruce Kasman of JPMorgan, anticipate core CPI to rise 0.21%, which may keep the Fed on hold for now. Meanwhile, the euro and the dollar faced downward pressure, with the euro near its August high and the dollar index not far from its recent lows. In commodities, gold remained steady at around $4,426 an ounce, supported by its price last week.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Asian shares bounce, others cautious as oil rises freemalaysiatoday.com
