Markets fly away, oil unscrews: This article explores the topic in depth.
Nevertheless,
Markets fly away. Moreover, oil unscrews:
Oil dropped by 3 % while global stocks flew and the dollar fell on Tuesday, after the announcement by US President Donald Trump of a ceasefire between Israel and Iran. Therefore, This decision marks a spectacular reversal of situation after the American strikes on Iranian nuclear sites occurred during the weekend.
The term contracts on the Brent had already plunged 7 % on Monday. Furthermore, while American actions jumped after Iran had a symbolic response against an American base, while indicating that there would be there for the moment.
With the immediate threat weighing on the vital maritime route of the apparently excluded Ormuz Strait of Ormuz. However, the Brent -reference barrel, a world reference, has touched its lowest level since June 11, recently established itself at $ 69.11. Consequently, US gross trial contracts fell 3.2 % to $ 66.32 per markets fly away, oil unscrews barrel.
“Investors have largely ignored which. on the surface, seemed to be a major geopolitical event this weekend, and those who have kept their cool and avoided reducing their exposure to risk have so far been right,” analyzes Kenneth Broux, head of FX and rate research at Société Générale.
The declaration of the Israeli Defense Minister Israel Katz. saying that he had ordered the army to strike Tehran in response to Iranian missiles drawn in the cease-fire violation, has hardly started the ambient optimism. Iran, for its part, assured that he did not break the ceasefire.
Risky assets have increased, the term contracts on the S&P 500 climbing 0.9 % and those on the Nasdaq by 1.1 %. The STOXX 600 pan -European index won 1.4 %, the values ​​of the travel sector, whose airlines, leaping by 3.5 %, while the securities of oil and gas ceded 2 %.
Earlier markets fly away, oil unscrews in the day, the enlarged MSCI index of Asia-Pacific actions outside Japan had increased by 2.2 %, while the Japanese Nikkei won 1.1 %.
However. this wave of optimism has not spread to the bond market, where attention has focused on the German budget draft, which provides for record investments requiring increased debt.
The impact was particularly felt on long maturity obligations. The rate at 30 years German jumped from 8 base points to 3.065 % and that at 10 years increased from 5 points to 2.60 %.
These movements have repercussions in the markets. the yield of the US Treasury Bon at 10 years advancing from 2 base points to 4.34 % and that of the United Kingdom from 2 points to 4.51 %. However. the rise in bets on a drop in American rates this year has contained bond yields in the United States.
Towards a drop in rates?
markets fly away, oil unscrews Investors remain attentive to the declarations of officials of the Federal Reserve. who, on the whole, are cautious about the imminence of a drop in rates.
Nevertheless. the vice-president in charge of supervision, Michelle Bowman, estimated on Monday that a drop in interest rates approached, the risks weighing on the job market seeming to increase.
This declaration follows that of governor Christopher Waller. who, on Friday, said he was ready to consider a drop in rates at the meeting of July 29 and 30.
The president of the FED. Jerome Powell, must express themselves in front of the congress later on Tuesday and has so far been more prudent as to a short -term relaxation.
The markets are still only anticipated by approximately 22 % of a drop in Fed rates at the next meeting on July 30. but a drop in September is almost integrated into the prices.
The markets fly away, oil unscrews announcement of the ceasefire accentuated the drop in the dollar, which fell 0.77 % to 145.0 yen, after reaching a six-week summit to 148 yen in the night.
The euro increased by 0.2 % to $ 1.1602 on Tuesday, after winning 0.5 % the day before.
The Yen. the Euro benefited from the fall in oil prices, the European Union and Japan being strongly dependent on imports of liquefied oil and natural gas, while the United States is net exporters.
In this climate of risk taking, the price of gold fell 1.3 % to 3,323 dollars an ounce.
Markets fly away, oil unscrews
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