Public Markets 3h Briefing
×Energy & Commodities
Oil markets faced intensified pressure bloomberg.com after two tankers were attacked in Iraqi waters, prompting suspension of oil terminal operations amid escalating tensions wsj.com in the Strait of Hormuz where hopes for quick revival of trade dim without U.S. naval escorts. The International Energy Agency's plan wsj.com to release 400 million barrels from reserves falls short of filling supply losses from the Persian Gulf, while the United States prepared to draw down ft.com 172 million barrels from its Strategic Petroleum Reserve as part of the coordinated global response. Rising oil prices weakened Asian currencies wsj.com against the dollar in early trade, with the yen hovering near its weakest level bloomberg.com of the year against the dollar as traders see a higher threshold for official intervention.
Financial Markets & Options
South Korean stock market turbulence has made options bloomberg.com appear attractive as expectations for future swings pale in comparison to recent volatility, while hedge funds ramped up bullish bets bloomberg.com on the Australian dollar in options markets before next week's central bank decision. Gold fell in early Asian trade wsj.com as the surge in oil prices pushed up inflation expectations and lifted Treasury yields, with the precious metal likely to continue facing headwinds from rising energy costs.
Technology & Business Developments
Australian software company Atlassian cut 10% ft.com of its workforce to adapt to the AI threat, becoming the latest technology firm to downsize amid technological disruption. Meanwhile, China accelerates humanoid robot development ft.com through a network of training farms aiming to supply the data needed to put 'brains' into machines, positioning itself at the forefront of the robotics race.
Trade & Geopolitical Factors
Soybeans likely to be on the agenda bloomberg.com when trade chiefs from the US and China meet next, with the conversation potentially shedding light on when Beijing plans to resume purchases in earnest. The Middle East conflict continues ft.com to darken the outlook for UK house prices as surging energy prices driven by the conflict change expectations for interest rate cuts, while the Pentagon restricted access nytimes.com for journalists to briefings on Iran war. In Peru, the presidential race remains wide open bloomberg.com with none of more than 30 candidates having strong support ahead of next month's vote, according to a new poll showing the frontrunner with just 11% backing.