Stocks, bonds cautious ahead of ‘formidable’ week for risk
The oil price was down around 2% to US$114.6 after reports that Qatari mediators were in Tehran on Sunday as part of an effort to de-escalate tensions in coordination with the US.
Global shares experienced a slight uptick on Monday as oil prices retreated from their recent six-month peak, in anticipation of a series of central bank meetings and corporate earnings reports. Brent futures (LCOc1) surged 6.2% last week, reaching their highest weekly close since mid-2022, driven by Houthi attacks on Saudi Arabia's energy infrastructure. The unrest in Yemen increased energy supply concerns.
Several major central banks, including those in the US, Japan, and Europe, are expected to meet during the week, adding to market volatility. Traders anticipate that the US Federal Reserve will maintain its current interest rate stance, while there is an 80% probability of a rate hike in December. The Bank of Japan and the European Central Bank are also expected to follow a similar path.
US core inflation, measured at 3.1% in September, remains elevated, with the economy projected to have grown at a robust 3.2% annualized pace. The potential for energy price increases has raised concerns among Fed participants, who fear that inflationary pressures could broaden.
Wall Street experienced a modest gain in S&P 500 ESc1 and Nasdaq futures NQc1. Meanwhile, 10-year Treasury yields remained stable at 5%, below the month's peak of 5.36%. In currency markets, the Japanese yen weakened, with the dollar rising 0.3% to 157.28 yen. The euro also strengthened, climbing 0.1% to US$1.121 after France avoided a credit downgrade.
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.
