Market Summary
Oil Retreats as Middle East Fears Ease: Brent crude fell more than 2% to $103.20 a barrel after President Trump indicated the US would not launch strikes against Iran ahead of the midterm elections. The comments helped ease immediate supply disruption concerns and supported demand for government bonds, despite ongoing uncertainty surrounding the region.
Treasuries Gain as Bond Auction Draws Strong Demand: US Treasuries advanced after a 30-year debt auction attracted solid investor interest, with higher yields continuing to lure buyers back into the market. Long-dated yields moved lower, with the 30-year Treasury yield slipping below 5.62%. The softer yield backdrop weighed on the dollar and provided support for precious metals.
Gold Rallies as Dollar Weakens: Spot gold rose 1.6% to $4,191 an ounce as lower Treasury yields and a weaker US dollar improved the appeal of non-yielding assets. The Bloomberg Dollar Spot Index fell 0.1%, while the Chinese yuan strengthened amid hopes of further de-escalation in Middle East tensions.
Tech Optimism Lifts Equities Ahead of Earnings Season: US equity futures moved higher following reports of strong revenue growth at OpenAI, helping fuel a relief rally across technology stocks. Sources suggest annualised revenue could reach or exceed $70bn, providing a boost to sentiment ahead of the start of the corporate earnings season next week. NASDAQ 100 futures rose 0.6%, while S&P 500 futures gained 0.3%.
Economic Calendar
- University of Michigan Consumer Sentiment
Key Market Moves Today
- S&P 500 Futures: +0.34% (7,842)
- Crude Oil: -1.32% ($90.28)
- Spot Gold: +1.43% ($4,193)
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