Headlines:
- Oil prices close in on $100 as US-Iran tensions persist, but the real risk comes after it gets there
- European stocks slide as $100 oil revives inflation fears ahead of ECB
- The Nasdaq consolidates at key resistance as traders await the US CPI report
- AI infrastructure stocks surged while software fell. Does the rotation continue Wednesday?
- Gold remains under pressure amid escalating US-Iran attacks and US CPI risks. What to watch next?
- ECB preview: A rate hike expected as markets focus on Lagarde, inflation and future policy
- DeepSeek reportedly preparing for IPO in what could be China’s biggest AI market test yet
Markets:
- Brent crude +2.7% to $100.55
- WTI crude +2.1% to $95.00
- Gold +1.1% to $4,403
- US 10-year yields +0.4 bps to 4.808%
- European stocks lower; S&P 500 futures -0.4%
- JPY leads, NZD lags on the day
There weren’t any major headlines on the session with little on the economic calendar to work through in Europe this morning.
The broader market focus remains on the US CPI report this coming Friday, though we will also have the ECB monetary policy decision tomorrow.
In the meantime, market sentiment remains more guarded as oil prices continue to ramp higher. Brent crude is now testing waters above $100 while WTI crude is up over 2% in touching $95 today.
In turn, that is keeping bond yields elevated with 10-year Treasury yields sitting at 4.808%. And that is then translating to further pressure on equities with European stocks sliding by well over 1% on the day. The DAX is down by 1.6% with the CAC 40 down by 1.9%.
Meanwhile, US futures have also slumped during the session with both S&P 500 futures and Nasdaq futures dropping by 0.4%.
Looking to major currencies, there wasn’t all too much movement with the dollar keeping a more mixed look overall. EUR/USD is up just 0.1% to 1.1640 while USD/JPY is down 0.4% to 153.40 on the day.
In other markets, gold is catching a decent technical bounce today to $4,403 with silver also trading up by over 1% to $66.46 currently. Bitcoin is also holding slight gains, trading up by 0.5% to $78,911.
This article was written by Justin Low at investinglive.com.