Markets today are being driven by geopolitical tensions surrounding the Strait of Hormuz and a sell-off in technology shares. Below is a brief summary of the key movements.
Oil prices soar
OIL CFDs are up by 4.42%, and WTI by 4.41%, following President Trump’s latest comments regarding the US’s new role as ‘guardian’ of the Strait of Hormuz. Brent and WTI crude oil futures are up by over 3% at the open, rebounding from session lows following a renewed escalation of the US-Iran conflict in the region. Tanker traffic through the strait has slowed dramatically in recent days, which is providing further support for prices.
Wall Street under pressure
Futures for the S&P 500 and Nasdaq-100 point to a lower opening, with the Nasdaq-100 down as much as 1 per cent, mainly due to a sell-off in the memory and semiconductor sectors following SK Hynix’s extremely volatile debut on the Nasdaq. The US100 is down 1.21 per cent, whilst Bitcoin is down 1.78 per cent.
Precious metals, defying logic
Gold is down 2.47% and silver 2.90% despite geopolitical tensions – an unusual reaction which the market attributes to concerns that the Fed will keep interest rates higher for longer ahead of tomorrow’s CPI reading. The inverse correlation with the US dollar is therefore becoming more pronounced.
The foreign exchange market is stable
USDJPY is up 0.38% and the USDIDX is up 0.11%, whilst EURUSD and GBPUSD remain virtually unchanged.
📲 You can find today’s detailed information and a full analysis of the above instruments on the xStation platform under the "Market Information" tab.
As regards the key instruments, the strength of oil and the US dollar is particularly noteworthy. Major stock market indices and precious metals are under pressure. Source: xStation
Gold Extends Losses to 3% Following Comments from Fed's Waller 🏛️
BREAKING: Trump reimposes a blockade on the Strait and announces a 20% “toll” on traffic passing through this route 🚢
US OPEN: Capital is once again fleeing “memory stocks”; Wall Street under pressure at the open 🚨
Market Wrap: Geopolitical déjà vu. Hormuz once again in the center of investors' attention.
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