investingLive European session wrap: Oil stumbles as markets cling on to US-Iran de-escalation hopes
Headlines:
- Market update today and what may be interesting to trade
- Oil prices fall as expectations for de-escalation strengthen after the US halted strikes on Iran
- A case of US-Iran déjà vu for markets?
- Big tech earnings in focus in Wall Street this week
- ECB policymaker Žigman says September decision will be based on data and projections
- ECB policymaker Kazimir says at least one more rate hike will be needed
- Japan must exit excessively tight fiscal policy, says prime minister Takaichi
- Germany business sentiment rises further and by more than expected in July - Ifo
- UK retailers report smallest downturn in sales in six months during July - CBI
Markets:
- WTI crude down 6.7% to $83.30, Brent crude down 7.5% to $89.45
- European equities gain; S&P 500 futures up 0.9%
- CHF leads, USD lags on the day
- 10-year Treasury yields down 4.5 bps to 4.63%
- Gold up 1.1% to $4,097
- Bitcoin up 0.7% to $65,090
Markets are breathing a sigh of relief as the US and Iran put a pause on military strikes, giving hope for a potential path to resume nuclear talks. There's still no guarantee for now, but hopes for de-escalation are helping to provide some reprieve for broader markets to start the new week.
Despite the Strait of Hormuz still being closed, oil prices opened sharply lower with WTI crude down by nearly 7% to $83.30 on the day.
With that, broader markets are seeing a more consistent risk positive reaction with the US dollar falling alongside bond yields. EUR/USD is up 0.2% to 1.1390-00 with large expiries at 1.1400 keeping things in check for now. Meanwhile, USD/JPY is down 0.2% to 163.58 in buying a breather for Japan's ministry of finance. This comes 10-year Treasury yields fall by 4.5 bps to 4.63%.
In the equities space, European indices are cheering the risk optimism with the DAX leading gains in trading up by 1.6%. The CAC 40 is up 1.0% with it being all green on the screen for regional indices.
US futures are also benefiting from this with big tech earnings eyed later in the week. S&P 500 futures are up 0.9% with Nasdaq futures up 1.4% in eyeing a rebound from the drop on Friday.
Elsewhere, gold is seen up 1.1% to $4,097 with silver up 1.5% to $59 again as the back and forth dance continues for precious metals.
Looking ahead this week, there will be much to play for with major central bank decisions, US earnings, and month-end shenanigans all in the picture alongside US-Iran developments.
This article was written by Justin Low at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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