Oil prices fell to their lowest since early June, with Brent crude dropping to $79.34 per barrel as concerns about Chinese energy demand overshadowed geopolitical tensions.
Prices for other commodities like copper, iron ore, zinc, and aluminum also decreased, reflecting broader market apprehension about global economic conditions.
China’s lack of new economic stimulus and sluggish growth expectations in the U.S. and eurozone contributed to this negative sentiment.
In financial markets, U.S. stock futures showed a modest uptick, while the MSCI All-World index remained flat and European indices, particularly London’s FTSE 100, faced declines.
European economic growth exceeded forecasts, but Germany’s contraction had little impact on interest rate expectations.
Global yields were steady, with the U.S. and Japanese bonds showing slight changes.
Investors are closely watching upcoming central bank decisions and major corporate earnings reports. While no U.S. rate cut is anticipated this week, markets expect a reduction by September. In Japan, a possible rate hike is on the table.
Currency markets remained stable but cautious, with the euro and yen experiencing modest fluctuations. Key reports from Microsoft and AMD are due later today, along with inflation data from Germany, Spain, and Australia.
Reuters