Iranian supply disruptions pose a risk of pushing Brent futures above US$100/bbl in the near term.
Any sustained rally in oil prices would add to inflationary pressures, which would impact the equity market.
“The risk is higher oil prices, a slump in equities, and a surge in volatility supports the dollar and yen, and undermine ‘risk’ currencies,” said analysts at CBA in a note.“Given the tightness already facing physical oil markets in Q4 2023, an immediate reduction in Iran’s oil exports risks pushing Brent futures above US$100/bbl in the short term.”
The cautious mood was a balm for sovereign bonds after recent heavy selling and 10-year Treasury futures rose a sizable 11 ticks. Yields were indicated around 4.75% compared to 4.81% on Friday.Any sustained rally in oil prices would act as a tax on consumers and add to inflationary pressures, which weighed on equities as S&P 500 futures shed 0.8% and Nasdaq futures lost 0.7%.While Tokyo was closed, Nikkei futures were trading down 0.8% and near where the cash market ended on Friday.
Median forecasts are for a 0.3% gain in both the headline and core measures, which should see the annual pace of inflation slow a touch. Fed fund futures now implied an 86% chance rates would stay on hold in November, and had around 75 basis points of cuts priced in for 2024.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
30 years after Oslo, we should not give up on peace in Middle EastAs remote as an end to the conflict may appear today, ‘it always seems impossible until it’s done’.
Read more »
Govt ‘deeply concerned’ over violence in Middle EastWisma Putra asks the UN Security Council to convene and call for an end to the fighting.
Read more »
Wisma Putra: Malaysia deeply concerned over latest escalation of violence in Middle EastPUTRAJAYA, Oct 8 — Malaysia has expressed deep concern over the escalating clashes in and around the Gaza Strip, emphasising the need for an immediate halt to the loss of lives,...
Read more »
In striking Israel, Hamas also took aim at Middle East security realignmentDUBAI, Oct 8 — When Islamist group Hamas launched a spectacular attack against Israel, it also took aim at efforts to forge new regional security alignments that could threaten...
Read more »
Malaysia deeply concerned over latest escalation of violence in middle eastPUTRAJAYA: Malaysia has expressed deep concern over the escalating clashes in and around the Gaza Strip, emphasising the need for an immediate halt to...
Read more »
In striking Israel, Hamas also takes aim at Middle East security realignmentDUBAI, Oct 8 — When Islamist group Hamas launched a spectacular attack against Israel, it also took aim at efforts to forge new regional security alignments that could threaten...
Read more »