Oil stable as tensions with Iran ease, stocks rise: Market down


(Bloomberg) — Global markets showed signs of stability and oil prices fell as traders bet that tensions will not escalate in the Middle East following Iran's attack on Israel over the weekend. European shares and US equity index futures rose.

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After Iran said “the matter can be considered closed” and President Joe Biden reportedly told Israeli Prime Minister Benjamin Netanyahu that the US would not support an Israeli retaliatory strike, oil dropped on speculation that The conflict will remain controlled. Treasuries declined after yields fell in the previous session.

“Market participants have certainly not given up hope that last weekend's events were just a one-time event, while they are holding their breath for what might happen next,” said Hebe Chen, an analyst at IG Markets. “

With investors already troubled by the prospect of sticky inflation and prolonged high interest rates, the surge in the Middle East brought new volatility to markets. Many analysts predict that oil could surpass $100 a barrel if the conflict escalates and predict future stock-market losses as well as a flight to Treasuries, gold and the dollar.

For now, the focus will return to Wall Street's earnings season, which began on Friday with disappointing data for the big banks and continues today with reports from Goldman Sachs, Schwab and M&T Bank.

There is also a host of economic data due this week, including Chinese growth data and inflation readings from Japan, the Eurozone and the UK. The spring meetings of the International Monetary Fund and the World Bank will be held in Washington.

Separately, aluminum and nickel rose after new US and UK sanctions banned deliveries of any Russian supplies after midnight on Friday. Gold also gained momentum.

Shares in Asia fell, tracking Friday's decline in US stocks due to rising geopolitical risks, bank earnings and the prospect of the Federal Reserve keeping interest rates high for longer.

Major events of this week:

  • Eurozone industrial production, Monday

  • US Retail Sales, Empire Manufacturing, Trade List, Monday

  • US federal income taxes will be due on Monday

  • The spring meetings of the IMF and the World Bank begin on Monday in Washington. Key ministerial meetings will be held on 17-19 April

  • Canada CPI, Tuesday

  • China asset prices, retail sales, industrial production, gross domestic product, Tuesday

  • UK jobless claims, unemployment, Tuesday

  • New Zealand home sales, CPI, Wednesday

  • Eurozone CPI, Wednesday

  • UK CPI, Wednesday

  • Australia unemployment, Thursday

  • Japan CPI, Friday

  • Elections in India start from Friday

Some key movements in the markets:

shares

  • The Stoxx Europe 600 rose 0.3% at 8:04 a.m. London time

  • S&P 500 futures rose 0.6%

  • Nasdaq 100 futures rose 0.6%

  • Futures on the Dow Jones Industrial Average rose 0.4%

  • MSCI Asia Pacific index fell 0.8%

  • MSCI emerging markets index fell 0.6%

currencies

  • The Bloomberg Dollar Spot Index was little changed

  • The euro rose 0.1% to $1.0654

  • The Japanese yen fell 0.5% to 153.93 per dollar

  • The offshore yuan rose 0.1% to 7.2590 per dollar

  • The British pound rose 0.2% to $1.2471

cryptocurrency

  • Bitcoin rises 4% to $66,423.43

  • Ether rose 5.4% to $3,235.58

bond

  • Yields on 10-year Treasuries rose three basis points to 4.55%

  • Germany's 10-year yield rose four basis points to 2.40%

  • UK 10-year yield rose five basis points to 4.18%

Goods

  • Brent crude fell 0.6% to $89.88 a barrel

  • Spot gold rose 0.4% to $2,354.20 an ounce

This story was generated with the assistance of Bloomberg Automation.

–With assistance from Winnie Sue.

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