Oil prices move higher and equities come under pressure
|The rally in stocks has fizzled and oil is turning higher again, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
Risk off move deepens
Trump might have declared the war was running ahead of schedule, but no one seems to have told the Iranians. The US may well be running out of targets, but Iran has settled in for a long conflict, continuing to target energy infrastructure and shipping. It has barely started on the latter, but has already choked off the key waterway. Despite the release of IEA reserves, it looks like oil has bottomed out for now, ratcheting up the pressure on the US administration to find a way to end the conflict. Neither its opponent nor its ally however seem in any mood to stop yet.
Spectre of higher inflation looms
Today’s US inflation data was out of date before it was even released. But stocks are already pricing in higher prices around the globe. While oil prices have dominated attention, it is the global tussle for gas supplies that might be the real driver of the much-feared but so far absent second wave of inflation.
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