Crude Oil slips to six-week low

Chris Beauchamp IG

Despite oil slipping to a six-week low, a hotter-than-expected US CPI reading puts renewed pressure on US stock markets, says Axel Rudolph, Chief Technical Analyst at online trading and investing platform IG.

Crude oil drops to six-week low

The price of light crude oil falls to $85 a barrel, its lowest level since late August and extending Monday’s 4.4% decline, as hopes of a diplomatic resolution to the Middle East conflict grow. President Trump signalling that further strikes on Iran may not be necessary - at a time when oil flows through the Strait of Hormuz are increasing and Middle Eastern exports recover towards pre-war levels - ease supply concerns.

US Treasury yields rise post hot CPI

The US 10-year Treasury yield rises towards 5.00% as hotter-than-expected October inflation strengthens expectations of further Federal Reserve rate hikes, with Fed Governor Waller also backing a December increase. Higher yields weigh on US equities, with the S&P 500 falling 0.6% and Nasdaq 100 down 1%, as investors reassess high-debt AI companies and the outlook for further rate increases.

Author

Chris Beauchamp

Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.

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USD/JPY retakes 158.00 on weak Japanese data; focus shifts to US CPI

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