Global stock markets are volatile! Rising oil prices are pressuring stocks, while a weaker dollar is supporting gold. Investors are watching for a potential US-Iran conflict.
U.S. stock markets closed lower on Monday, pressured by rising oil prices and soaring U.S. bond yields, as tensions between the U.S. and Iran continued after neither side renewed the ceasefire agreement. Gold rose on a weaker dollar and expectations that the Federal Reserve might not rush to raise interest rates.
U.S. stock markets closed lower, weighed down by surging oil prices and high bond yields.
U.S. stock markets closed lower on Monday (August 17, 2569). The Dow Jones and S&P 500 fell by about 0.5%, while the Nasdaq declined less, after oil prices surged more than 2% amid uncertainty surrounding the end of the US-Iran ceasefire. Meanwhile, US bond yields rose, fueling investor concerns about inflationary pressures.
- Dow Jones Industrial Average Closed at 53,459.78 points, down 272.63 points (-0.51%)
- S&P 500 Index Closed at 7,745.06 points, down 40.70 points (-0.52%)
- Nasdaq Composite Index Closed at 26,644.911 points, down 84.253 points (-0.32%)
The yield on 30-year U.S. Treasury bonds surged to its highest level since June 2550 as investors watched for U.S. economic data, including July import and export price figures, housing starts and pending home sales, as well as Home Depot's earnings report.
European stock markets closed lower, pressured by concerns about the global economy.
European stock markets closed lower on Monday. Following the trend in global stock markets, investors continue to monitor tensions between the US and Iran, as well as rising oil prices which are fueling concerns about inflation and the economic outlook.
STOXX 600 Index Closed at 656.41 points, down 1.45 points (-0.22%)
- DAX German stock market index Closed at 26,338.61 points, down 101.70 points (-0.38%)
- CAC 40 Index of the French stock market Closed at 8,579.60 points, down 57.20 points (-0.66%)
The investment atmosphere in European markets is under pressure from concerns that higher energy prices could add inflationary pressure, while investors are also monitoring the monetary policy direction of central banks around the world.
The UK stock market closed lower, with rising oil prices weighing on investment sentiment.
The London stock market closed lower on Monday. Amid selling pressure in global stock markets, oil prices rose due to uncertainty surrounding the situation between the US and Iran, raising concerns about inflation and energy costs.
- FTSE 100 Index UK Stock Market Closed at 10,720.30 points, down 29.81 points (-0.28%)
Investors continue to monitor the situation in the Middle East, particularly the risk that conflict could disrupt oil shipments through the Strait of Hormuz, potentially impacting energy prices and global financial markets.
Oil prices surged above $90 amid fears that conflict would affect Hormuz.
World oil prices rose sharply on Monday. Following the failure of the United States and Iran to reach an agreement to extend the memorandum of understanding (MOU) created to open the Strait of Hormuz during negotiations, Iranian officials signaled that Tehran might escalate the conflict if diplomatic talks with the US fail.
- WTI crude oil price (September delivery) It closed at $84.50 per barrel, up 2.6%.
- Brent crude oil price (October delivery) It closed at $90.87 per barrel, up 2.7%.
Shipping through the Strait of Hormuz has slowed significantly, with data from Kpler indicating that only three ships passed through on Sunday, compared to an average of 12 ships over five days. Before the war, around 130 ships passed through the strait.
Analysts believe Brent crude oil prices have the potential to rise back close to $100 per barrel if China increases its crude oil imports, after previously significantly reducing imports, which helped alleviate downward pressure on oil prices.
Gold prices rose as the dollar weakened and markets lowered expectations of a Fed interest rate hike.
Global gold prices rose on Monday, supported by a weaker dollar and lower expectations of a Federal Reserve interest rate hike following weaker-than-expected U.S. economic data. Tensions in the Middle East also fueled safe-haven demand.
- Spot Gold Price Closed at $4,413.93/ounce, up 0.9%.
- Gold price on Comex market (December delivery) Closed at $4,473.70/ounce, up 0.8%.
Markets have lowered their expectations of a Federal Reserve interest rate hike after earlier US employment and inflation figures were weaker than expected. Investors are also awaiting the release of the July Fed meeting minutes on Wednesday to assess the future direction of monetary policy.
The dollar weakened as investors lowered their expectations of a Federal Reserve interest rate hike.
The dollar weakened against the euro and the Swiss franc on Monday. Investors have lowered their expectations for a Federal Reserve interest rate hike following weak U.S. economic data, as markets prepare to watch the Fed's Jackson Hole meeting next week.
- Euro/Dollar It closed at approximately $1.1578, up 0.08%.
- Dollar/Yen It closed at approximately 159.49 yen, down 0.11%.
- Dollar/Swiss Franc Closed at 0.81085 Swiss francs, down 0.34%.
- Dollar Index The market closed at 99.60 points, remaining stable after falling to its lowest level since early June.
The market has lowered its forecast for the likelihood of a Federal Reserve interest rate hike at its September meeting to 30.6% from 52.2% the previous week, as investors watch for signals from the Fed regarding the interest rate outlook after retail sales data for July fell for the first time in nine months and earlier employment figures came in lower than expected.
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