Iran has warned global markets to prepare for oil at US$200 per barrel , escalating rhetoric as attacks intensify and shipping through the Strait of Hormuz remains effectively frozen. While oil prices have retreated from recent highs near US$120, Tehran’s message underscores the growing risk of a prolonged energy shock. Key Takeaways Iran warns oil could surge to US$200 per barrel Strait of Hormuz remains blocked, disrupting 20% of global oil flows 14 merchant ships reportedly struck since conflict began IEA expected to propose record 400 million-barrel reserve release Markets currently betting conflict may be contained Oil Market on Edge Iran’s military command said oil prices depend on regional security — warning the world to prepare for US$200 crude if instability persists. The Strait of Hormuz, a narrow chokepoint along Iran’s coast, normally handles: About 20% of global oil shipments A significant share of global LNG trade So far: At least 14 ships have reportedly been struck...
KUALA
LUMPUR (July 31): The FBM KLCI fell 7.82 points or 0.48% today to
settle at 1,634.87 points after Asian share markets closed down as fresh
trade war concerns emerged due to threats from US President Donald
Trump to China.
Global investors are also anticipating the widely-expected US intrest rate cut as they evaluated the impact of a no-deal Brexit on currency markets. Across Asian stock indices today, Japan's Nikkei 225 closed down 0.86%, South Korea's Kospi fell 0.69% while Hong Kong's Hang Seng dropped 1.31%.
Reuters reported that Asian shares fell on Wednesday to a six-week trough, rattled by fresh trade war concerns following threats from Trump to Beijing, while increasing worries about a no-deal Brexit kept the pound under pressure.
It was reported that as trade talks between the world's two biggest
economies continued in Shanghai on Tuesday, Trump warned China against
trying to wait out his first term in office to finalise a deal. It was
reported that Trump tweeted that, if he wins re-election in November
2020, the outcome could be no agreement or a harsher one.
On US monetary policy, it was reported that later in the day, the US Federal Reserve is widely expected to cut interest rates for the first time since the financial crisis more than a decade ago.
In Malaysia, Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com that as the US-China trade spat persisted, "no one knows what the outcome will be".
On US monetary policy, Wong said the current US economic condition does not indicatively show that there should be an interest rate cut although bond markets have priced in a rate reduction.
"Either way, it (rate cut or no rate cut) will negatively affect the markets," he said.
Across Bursa Malaysia, Wong observed that investors might have trod a cautious path amid global uncertainties after Bursa decliners led gainers by 499 to 257 respectively on what appeared to be broad-based selling across the exchange.
Top Bursa decliners included KLCI stocks Petronas Dagangan Bhd, Hong Leong Financial Group Bhd and Public Bank Bhd.
Source: The Edge
Global investors are also anticipating the widely-expected US intrest rate cut as they evaluated the impact of a no-deal Brexit on currency markets. Across Asian stock indices today, Japan's Nikkei 225 closed down 0.86%, South Korea's Kospi fell 0.69% while Hong Kong's Hang Seng dropped 1.31%.
Reuters reported that Asian shares fell on Wednesday to a six-week trough, rattled by fresh trade war concerns following threats from Trump to Beijing, while increasing worries about a no-deal Brexit kept the pound under pressure.
On US monetary policy, it was reported that later in the day, the US Federal Reserve is widely expected to cut interest rates for the first time since the financial crisis more than a decade ago.
In Malaysia, Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com that as the US-China trade spat persisted, "no one knows what the outcome will be".
On US monetary policy, Wong said the current US economic condition does not indicatively show that there should be an interest rate cut although bond markets have priced in a rate reduction.
"Either way, it (rate cut or no rate cut) will negatively affect the markets," he said.
Across Bursa Malaysia, Wong observed that investors might have trod a cautious path amid global uncertainties after Bursa decliners led gainers by 499 to 257 respectively on what appeared to be broad-based selling across the exchange.
Top Bursa decliners included KLCI stocks Petronas Dagangan Bhd, Hong Leong Financial Group Bhd and Public Bank Bhd.
Source: The Edge
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