US Stocks Vary, With Brent Approaching $90 – Europe Market Wrap
US market futures struggled to find direction, while Brent traded near $90 per barrel, as an expected record release of petroleum stockpiles failed to raise confidence amid attacks on vessels in the Middle East.
Volatility remained high in equities, with S&P 500 contracts swinging between gains and losses following an earlier 0.5% rise. Brent crude gained 2%. Treasuries were barely changed ahead of the February inflation report. European bonds fell after a central bank official cautioned that the Iranian war could prompt an earlier than expected interest rate hike.
Oracle was the standout performance in premarket trade, up 10% on good results and a positive outlook. The Dollar and gold were largely unchanged.
As the Iranian confrontation continues with no signs of easing, the UK Navy reported three ships being assaulted in the Strait of Hormuz and the Persian Gulf. Governments are attempting to curb the rise in energy prices, with the IEA suggesting the release of emergency oil stocks of up to 400 million barrels, according to a person knowledgeable.
Markets have swung significantly in recent days, as hopes for a controlled war gave way to a spreading conflict that has pushed the Middle East’s energy behemoths to the brink of disaster. Investors are concerned that rising oil prices would reignite inflation and push central bankers to tighten monetary policy further.
