Crude oil prices have managed to sustain the gains observed last Friday, with market attention keenly focused on the unfolding events in the Middle East. Reports of sporadic conflicts in the region have instilled caution among traders, who remain concerned about the potential disruption to the global oil supply. The ongoing military buildup in the area only intensifies the scrutiny surrounding oil supply stability. Moreover, US Treasury Secretary Janet Yellen’s remarks on the possibility of further sanctions against Iran have added to the unease surrounding energy product availability.

  • WTI futures contract near $87.70 per barrel.
  • $85 remains near term support

Mixed Performance for Safe Haven Assets

Safe haven assets have experienced a mixed start to the week. Gold, which had a remarkable rally on Friday, has eased slightly and dipped below $1,920 per ounce.

Currency Updates

  • The Swiss Franc has largely retained the strength it exhibited last week, hovering near 0.9000 against the US Dollar and nearing a 13-month peak against the Euro at 0.9480.
  • The US Dollar is currently weaker during the Asian session, while the Australian and New Zealand Dollars are making a recovery after substantial losses at the end of last week.

New Zealand Election and Market Implications

The results of the New Zealand election remain inconclusive at this stage, though there is a discernible shift away from the incumbent administration towards the conservative side of politics. Regardless, the formation of a coalition government will be necessary over the coming weeks. The S&P NZX 20 index saw a decrease of approximately one-third of a percent.

Global Equity Market Outlook

In the Asia-Pacific (APAC) region, equities are facing downward pressure, with Japan’s Nikkei 225 index down by over 1.50%. However, futures are indicating a steady start for European and US equity indices as the day begins.

Upcoming Market Events to Watch

In the days ahead, keep a close eye on sentiment data from manufacturers in both Canada and the United States. Additionally, pay attention to the commentary from key central bank speakers, including the Bank of England (BoE), European Central Bank (ECB), and Federal Reserve (Fed).

This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. INFINOX is not authorised to provide investment advice. No opinion given in the material constitutes a recommendation by INFINOX or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

All trading carries risk.