Headlines:
Oil prices above $100 continue to lift bond yields as inflation fears growEuropean stocks edge higher as investors brace for ECB decisionStock movers today: Meta leads AI optimism while ServiceTitan and Navan show the cost of missing expectationsOracle earnings preview: AI spending, cloud growth and a $638 billion backlog in focusEUR/USD almost erased Warsh-driven selloff ahead of the ECB decision. What to watch next?ECB preview: what is expected, what is priced in and what could surpriseECB preview: What major banks and analysts expect from Lagarde and interest ratesGermany August CPI: Energy shock keeps inflation pressures elevated
Markets:
Brent crude oil up 1.2% to $102.41WTI crude oil up 1.5% to $97.46US 10-year yields up 4 bps to 4.877%Gold down 0.5% to $4,377USD leads, AUD and JPY lag on the dayEuropean indices mildly higher, S&P 500 futures -0.1%
Another day goes by and it is the same old story in markets this week. Oil prices and bond yields continue to rise in tandem, and that is reverberating across broader markets for the most part.
It’s a timely reminder of inflation worries just ahead of the ECB decision later and also the US CPI report tomorrow.
Brent crude is pushing up by over 1% to $102.41 with WTI crude also up over 1% to $97.46 on the day. In turn, that is leading to a further rise in Treasury yields with 10-year yields up by 4 bps to 4.877% and 30-year yields up nearly 4 bps as well to 5.322%. So much for the “Bessent put”, as the Treasury buyback announcement yesterday was much ado about nothing essentially.
The push up in oil prices and yields is keeping broader markets on edge as such. The dollar is steadier across the board with USD/JPY recovering to above 154.00 despite Bessent’s threats there too.
Meanwhile, equities remain cautious with European indices seeing light gains ahead of the ECB later but they look to be more of a breather after the selling so far this week. US futures are down as Wall Street remains pressured from higher yields ahead of the US CPI report tomorrow.
Looking elsewhere, gold is down 0.5% to $4,377 in a turnaround as it drops from above $4,400 earlier in the session. Meanwhile, Bitcoin is also down 0.6% on the day to $77,857 as risk sentiment remains sluggish for the most part this week.
This article was written by Justin Low at investinglive.com.