Global Markets:
- Asian Stock Markets : Nikkei down 1.76%, Shanghai Composite down 0.64 Hang Seng down 1.27% ASX down 1.20%
- Commodities : Gold at $5,158.39 (-0.41%) Silver at $85.105 (-0.62%), Brent Oil at $100.43 (9.22%), WTI Oil at $94.43 (8.21%)
- Rates : US 10-year yield at 4.238, UK 10-year yield at 4.6840, Germany 10-year yield at 2.9318
News & Data:
- (USD) Core CPI m/m 0.2% to 0.2% expected
- (USD) CPI m/m 0.3% to 0.3% expected
- (USD) CPI y/y 2.4% to 2.4% expected
Markets Update:
Asia-Pacific markets declined on Thursday as investors reacted to volatile oil prices and rising geopolitical tensions in the Middle East. The uncertainty comes despite a major announcement by the U.S. and its allies to release emergency crude reserves in an effort to stabilize global energy markets.
The International Energy Agency (IEA) plans to release around 400 million barrels of oil following supply disruptions caused by the ongoing Iran conflict. This move represents the largest emergency oil release in the organization’s history, although the agency has not yet specified when the additional supply will enter the market.
In the United States, Energy Secretary Chris Wright confirmed that the country will release 172 million barrels of oil from the Strategic Petroleum Reserve to help ease energy costs. The decision follows comments from President Donald Trump earlier in the day stating that the administration would tap into the reserve to control rising fuel prices.
Despite these measures, oil prices surged. West Texas Intermediate crude jumped about 8.8% to around $95 per barrel, while global benchmark Brent crude climbed roughly 8.9% to trade near $100 per barrel.
Regional equity markets reacted negatively. Australia’s S&P/ASX 200 fell 1.61%, Japan’s Nikkei 225 dropped 1.54%, and the Topix declined 1.61%. South Korea’s Kospi also slipped 1.3%.
Overnight in the U.S., the Dow Jones Industrial Average fell 0.61%, while the S&P 500 slipped slightly. The Nasdaq Composite edged up modestly.
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