- Recent events in the Middle East and the further escalation of tensions had a negative impact on yesterday’s trading on Wall Street. The sell-off affected all major U.S. indices. The Dow Jones fell by 1.6%, the S&P 500 dropped 1.5%, and the Nasdaq declined by 1.8%.
- Despite assurances from U.S. authorities that Iran’s arsenal has been significantly degraded, tensions in the Middle East continue to rise. Reports are also emerging that Israel may soon launch a ground offensive in Lebanon.
- The U.S. has issued a 30-day license allowing countries to purchase Russian crude oil and petroleum products that are already loaded on tankers at sea, aiming to ease supply shortages caused by the war with Iran and transport disruptions in the Persian Gulf region.
- The license applies only to cargoes shipped before March 12 and is valid until April 11. However, it has drawn criticism for potentially partially weakening sanctions against Russia.
- According to Scott Bessent, the 30-day license enabling the purchase of Russian crude already on tankers is intended to help increase global supply and stabilize oil prices.
- The British Defense Secretary has stated that Iran is likely deploying underwater mines in the Strait of Hormuz.
- Another assessment comes from U.S. Treasury Secretary Scott Bessent, who noted that some ships are still able to transit the strait, suggesting that the shipping lane has not been mined.
- Crude oil prices remain around $100 per barrel.
- One of the key macroeconomic events of the day will be the release of the U.S. January PCE inflation reading. This is the Federal Reserve’s preferred measure of inflation, closely monitored by the central bank when making interest rate decisions.
- In the currency market, the U.S. dollar continues to strengthen.
- The sell-off on Asian stock markets continues, with the worst performers being Japan’s Nikkei 225 and South Korea’s KOSPI, which fell by 1.4% and 1.7%, respectively. The Nikkei was further weighed down by nearly a 6% drop in Honda Motor shares after the company forecasted an annual loss due to restructuring costs in its electric vehicle segment.
- The People’s Bank of China (PBOC) set today’s USD/CNY reference rate at 6.9007, while forecasts had expected 6.8888.
- Australia plans to release about 20% of its fuel reserves to alleviate shortages.
- On the precious metals market, sentiment is mixed, with a generally negative bias. Gold is slightly lower, hovering below $5,100 per ounce, while silver is under more pressure, trading around $82.5 per ounce.
- The cryptocurrency market is performing better. Bitcoin is up about 1.5%, breaking above $71,000, and Ethereum is also gaining, testing the $2,100 level.
Daily summary: Stocks in Europe and US return to declines; Brent above $100 again ❗
BREAKING: NATGAS ticks higher after EIA data release 💡
Market wrap: European stocks attempt to stabilize despite the surge in oil prices 🔍
Chart of the Day: EURUSD – Why is the Euro Losing to the Dollar?
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