Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Oil Lowest Since February Promoting Peak Inflation

Published 08/05/2022, 04:21 AM
Updated 07/09/2023, 06:31 AM

US equities slipped on Thursday as mixed earnings outlooks and more hawkish Fed official commentary offered little encouragement to investors ahead of today's US nonfarm payrolls. A return in US-China tensions also weighed on sentiment following headlines that 22 Chinese Air Force planes entered Taiwan's air defence zone and crossed the Taiwan Strait median line.

Oil prices continued their slide and should promote the peak inflation narrative, which seems sufficient enough to keep the markets supported for now.

Still, market exhaustion and nonfarm payroll anticipation were common themes among markets during the reasonably quiet New York session on Thursday. 

Oil

The most meaningful read-through from this week is the oil markets' newfangled predisposition to treat the bearish news as overly bearish and discount good news.

The deteriorating demand picture in the US seemingly justified the downswing despite OPEC's reluctance to deploy strategic spare capacity.

Foreign Exchange

Risk traded firm into the New York afternoon yesterday, assisting EM FX outperformance.

In G10, GBP/USD tumbled despite the Bank of England's most significant rate hike of 50bp since 1995 and the reasonably hawkish short-term guidance but retraced most of the move throughout the rest of the New York session.

Latest comments

remember that the administration has removed energy and food from the CPI so small changes in oil ($20/bbl) will not have immediate effect on core CPI.    Lower energy prices will help but we have gone from $50 to now $90/bbl.    the downside for equities is that lower oil demand means contracting economy which means less earnings in Q3.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.