Headlines: Red Sea shipping disruption now in focus as vessels are forced to change course Iran says it struck US military facilities in Jordan and Bahrain Oil prices extend gains as disruptions in the Strait of Hormuz and the Red Sea worsen the supply outlook US futures nudge…
wer on the day, eyes on big tech earnings USD/JPY stays in focus after run to fresh 40-year high Gold analysis today as bulls are staging a major bullish reversal from yesterday BoJ officials see recent Yen weakness as upside inflation risk, open to raising rates faster UK inflation eases slightly in June but core prices keep steady Markets: WTI crude up 3.5% to $87.30 European indices hold higher; DAX up 0.3% S&P 500 futures down 0.3%, Nasdaq futures down 0.9% CAD leads, NZD lags on the day US 10-year yields up 1.2 bps to 4.64% Gold up 1.1% to $4,120 With little on the agenda in European morning trade today, the focus in markets continue to revolve around the developments in the Middle East. In that regard, things are heating up now in the Red Sea as shipping to/from Saudi Arabia’s Jeddah port is under threat
And that is now having the potential to add to the global energy market disruption amid the Strait of Hormuz closure as well. Oil prices are ramping up given the situation, with WTI crude now up 3.5% to $87.30 and Brent crude up roughly 4% to $94.35. As such, we’re continuing to see bond yields push up as well with 10-year Treasury yields now at 4.64%.
In Europe, 10-year yields in France are bordering on 4% – which will be the highest since the global financial crisis. Similarly, 10-year yields in Germany are keeping near 3.18% and roughly its highest since 2011. With yields pushing up, the dollar is keeping steadier in the major currencies space.