Updated:2024-10-22 12:33 Views:167
A plume of smoke billows following an Israeli air strike on the village of Khiam in southern Lebanon near the border with Israel on October 7, 2024. – Oil rose above $80 a barrel Monday, October 7, on Middle East tensions. Brent North Sea crude, the international benchmark oil contract, went above $80 per barrel for the first time since late August. (Photo by Agence France-Presse)
Oil rose above $80 a barrel Monday, October 7, on Middle East tensions while equities slid in New York as political and interest rate concerns dented the recent rally.
Brent North Sea crude, the international benchmark oil contract, went above $80 per barrel for the first time since late August.
Article continues after this advertisementOil futures have experienced recent volatility, with Brent slumping under $70 last month on concerns about weak demand before intensified fighting in the Middle East sent prices soaring 10 percent last week.
FEATURED STORIES BUSINESS National ID gives more Filipinos ‘face value BUSINESS BIZ BUZZ: Unwinding Gogoro … quietly BUSINESS Polvoron maker seeks P500 million capital for expansionIsrael is preparing its retaliation against Iran over its missile attack last week, raising fears of a regional war that could involve strikes on oil facilities.
Beyond Middle East tensions, oil is also being supported by hopes of stronger Chinese demand after Beijing recently announced major stimulus measures to boost its flagging economy.
Article continues after this advertisementOffsetting price support is an expectation in the market that the OPEC+ group of oil-producing nations could reverse output cuts, according to analysts.
Article continues after this advertisement Oil market on a ‘wild ride’“The oil market is on a wild ride, caught in a whirlwind of geopolitical tension, OPEC+ strategy shifts, and a slowdown from its biggest customer, China,” noted independent analyst Stephen Innes.
Article continues after this advertisementRising oil prices played a role in Wall Street’s pullback. All three major indices fell about one percent or more.
“Wall Street is on a four-week win streak but (is) under pressure from rising yields, a rally in crude oil, and a strong dollar amid geopolitical and inflation concerns,” said Joe Mazzola, a strategist at Charles Schwab.
Article continues after this advertisementEuropean shares closed mixed with Frankfurt slipping and London and Paris gaining.
Major indices in New York retreated from gains made on Friday when a stronger-than-expected nonfarm jobs report showed the world’s largest economy is in good shape but clouded the outlook for further interest rate cuts from the Federal Reserve.
The figures led to “a sharp re-evaluation in the market’s forecasts for future Fed rate cuts,” said David Morrison, senior market analyst at Trade Nation.
Wall Street investors are now betting on a quarter-point interest rate cut by the US Federal Reserve, rather than a repeat of the aggressive 50-basis point cut made last month.
US inflation data due later this week will be closely watched for further clues on the Fed’s thinking heading into its next policy setting meeting.
Consumer prices will be reported Thursday with producer prices following on Friday.
This week also sees the start of the third-quarter earnings season with a slew of banks and financial institutions being among the first to report.
Earlier, Tokyo and Hong Kong stock markets closed higher, with the former boosted by a softer yen supporting Japanese exporters.
Hong Kong extended a rally fueled by China’s plans to boost its growth, notably by supporting its battered property sector and thanks to interest-rate cuts.
Shanghai was shut for a holiday.
Key figures around 1545 GMT
Brent North Sea Crude: UP 3.7 percent at $80.93 per barrel
West Texas Intermediate: UP 3.7 percent at $77.14 per barrel
New York – Dow: DOWN 0.9 percent at 41,954.24 (close)
New York – S&P 500: DOWN 1.0 percent at 5,695.94 (close)
New York – Nasdaq Composite: DOWN 1.2 percent at 17,923.90 (close)
London – FTSE 100: UP 0.3 percent at 8,303.62 (close)
Paris – CAC 40: UP 0.5 percent at 7,576.02 (close)
Frankfurt – DAX: DOWN 0.1 percent at 19,104.10 (close)
Tokyo – Nikkei 225: UP 1.8 percent at 39,332.74 (close)
Hong Kong – Hang Seng Index: UP 1.6 percent at 23,099.78 (close)
Shanghai – Composite: Closed for a holiday
Dollar/yen: DOWN at 148.13 from 148.70 yen on Friday
Pound/dollar: DOWN at $1.3084 from $1.3122
Euro/dollar: DOWN at $1.0973 from $1.0974
Euro/pound: UP at 83.86 pence from 83.61 pence
bur-jmb/des
Subscribe to our daily newsletter
© Agence France-Presseph365
READ NEXT Figaro Coffee System Inc. and Pepsi Philippines collaborate fo... PCCI, Korean biz group ink pact to promote economic cooperation EDITORS' PICK Heart Evangelista: Woman to woman, I never had a problem with Pia Wurtzbach SC issues TRO vs Comelec resolution on dismissed public officials QC Mayor Belmonte highlights social services in State of City Address NBA: Nuggets give Aaron Gordon 4-year, $133M extension INQside Look with senatorial aspirant Tito Sotto Espenido retracts drug-related allegations vs De Lima MOST READ SC issues TRO vs Comelec resolution on dismissed public officials Tropical Storm Kristine slightly intensifies; Signal No. 2 in 5 areas LIVE UPDATES: Tropical Storm Kristine Green spaces driving growth: How Filinvest City's Park System enhanced its property value View comments