Oil breaks US$100, Wall Street retreats and bond yields rise, inflation is becoming the market’s biggest risk again Global markets are starting Thursday in a more defensive position. Brent crude has broken above US$100 a barrel , U.S. Treasury yields are pushing higher, and Wall Street fell for a third straight session as investors reassess whether central banks may need to keep tightening rather than easing. For Malaysian investors, the key chain today is increasingly clear: Oil → inflation → interest rates → bond yields → USD/MYR → Bursa valuations. 30-second market snapshot Market / Asset Latest 🇺🇸 S&P 500 7,636.36, -0.48% 🇺🇸 Dow Jones 52,380.66, -0.77% 🇺🇸 Nasdaq 26,253.34, -0.64% 🇲🇾 FBM KLCI 1,714.34, virtually flat 💵 USD/MYR ~4.06 🇺🇸 U.S. 10Y Treasury ~4.84% 🇺🇸 U.S. 2Y Treasury ~4.42% 🥇 Gold ~US$4,396/oz 🛢️ Brent crude US$101.21/bbl 🛢️ WTI crude US$96.05/bbl ₿ Bitcoin ~US$79,300 🇯🇵 Nikkei ~64,760, -0.6% this morning Brent jumped about 3.4% Wednesda...
Oil prices fell on Friday as traders anxiously await Israel's potential retaliation against Iran and news of China's economic stimulus plans. Brent crude, the global benchmark, dropped below $79 a barrel, paring its weekly gains to less than 1%. The decline follows Israel's indecision on how to respond to last week's missile attack from Iran, which has kept investors on edge amid heightened volatility in the energy markets.
While US President Joe Biden has advised against targeting Iranian energy facilities, the uncertainty surrounding possible retaliatory measures has led hedge funds to increase net-long positions in oil, signaling caution over further escalation in the Middle East.
Analysts expect Israel to act at an "appropriate time," according to Harry Tchilinguirian, head of oil research at Onyx Commodities Ltd, who warned about the risk of escalation without miscalculation.
Meanwhile, traders are also awaiting further details on China's stimulus package, which is expected to be announced over the weekend. Weak oil consumption and slowing economic growth in the world's largest crude importer have weighed heavily on market sentiment this year. Analysts suggest that a stronger fiscal stimulus may be needed to complement China's recent monetary measures.
As of Friday afternoon in London, Brent crude for December settlement fell 0.8% to $78.78 a barrel, while WTI crude for November delivery dropped 0.8% to $75.28 a barrel.
Investors remain cautious, watching closely for any developments that may shift the balance in the oil market.
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