As the new trading week gets underway, the stand out story is the attack on Saudi Arabia's oil infrastructure and the fact that the temporary removal of as much as 6% of global output has seen crude prices lurch dramatically higher. Although upbeat oil prices can offer some support for heavyweight energy firms – as is being seen already in European trade - a jump of this size is bad news for consumers and expectations are that the effects will very quickly be seen amongst motorists. With the US economy already risking a slide into recessionary territory, if this spike is sustained then markets could be in for something of a shock. Given the significant impact this news could have on inflation, it also has the potential to steer thinking at the Federal Reserve. If that second rate cut this year looks a little less likely then again, stocks can be expected to come under renewed pressure.
Shortfalls in Chinese economic data released overnight will also be weighing on sentiment, whilst the Empire State Manufacturing Index is the one notable economic release from the US today. Due ahead of the market open, a modest shortfall is being expected but again anything more pessimistic than that has the potential to give yet another reason to consider booking profits. The Fed's announcement on Wednesday will remain front of mind, but the changing geopolitical situation may well lead to further volatility ahead of that key statement.
Ahead of the open, the market is calling the DOW down 102 at 27118 and the S&P down 12 at 2995.
The information provided here has been produced by third parties and does not reflect the opinion of AxiTrader. AxiTrader has reproduced the information without alteration or verification and does not represent that this material is accurate, current, or complete and it should not be relied upon as such. The Information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any particular trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800, as traders lack directional impetus amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
US core PCE inflation set to ease in February on month as Federal Reserve rate cut bets for June mount
The core Personal Consumption Expenditures Price Index is set to rise 0.3% MoM and 2.8% YoY in February. The revised Summary of Projections showed that policymakers upwardly revised end-2024 core PCE forecast to 2.6% from 2.4%.