Oil prices fall over 6%, Brent tumbles below $72 a barrel
Oil prices fell on Monday with losses increasing as the risks of geopolitical tensions in the Middle East faded, following a military strike by Israel on Iran that avoided critical nuclear or oil infrastructure.
City Group analysts have reduced their outlook for Brent price by $4 to $70 a barrel in the last three months of the year, as the Middle East military operations will likely not impact oil supplies.
US West Texas crude is expected by analysts to hover around $65 a barrel in 2025, with a tilt lower if OPEC+ increased supplies to the market.
On trading, Brent December futures fell 6.1% today, or $4.63 to $71.42 a barrel.
US crude futures due in December tumbled 6.2%, or $4.4 to $67.38 a barrel.
US stock indices open higher as investors await corporate earnings results
US stock indices rose on Monday as investors await the earnings result of several major corporations this week.
The list of corporations scheduled to announce results this week include Alphabet, Microsoft, Apple, Amazon, Meta, just a few days before the US presidential elections on November 5.
Investors also await a batch of US labor data this week, including job opportunities, private sector employment, and unemployment claims data, in addition to the all-important US payrolls report on Friday
On trading, Dow Jones rose 0.6% as of 14:12 GMT to 42,390 points, while S&P 500 rose 0.5% to 5836 points, as NASDAQ added 0.6% to 18,635 points.
Bitcoin about to surpass $70,000 on rising odds of Trump win
Bitcoin rose on Monday on track for the third profit in a row, hitting one-week highs and about to surpass the barrier of $70,000 for the first time since late July as the odds of a Trump presidential win surged.
The Federal Reserve is also expected to cut interest rates again later this year, potentially twice in both November and December.
Prices
Bitcoin rose 1.6% today at Bitstamp to $69,000, the highest in a week, with a session-low at $67,541.
On Sunday, bitcoin rose 1.4%, the second profit in a row after the release of the latest opinion polls on US elections.
Bitcoin however lost 1.4% last week, the first weekly loss in three weeks on profit-taking away from three-month highs at $69,487.
Crypto Market Value
The market value of cryptocurrencies rose by over $25 billion on Monday to a total of $2.432 trillion as both ethereum and bitcoin rallied.
Trump
The latest US presidential election opinion polls showed Donald Trump has an edge over his opponent Kamala Harris.
Trump is viewed as more supportive of cryptocurrencies and more relaxed with their regulations.
US Rates
According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut in November stood at 95%, while the odds of no changes in interest rates stood at 5%.
Now investors await a batch of US labor data, including job opportunities, private sector employment, and unemployment claims data, in addition to the all-important US payrolls report on Friday.
US dollar gives up three-month high on profit-taking
The US dollar fell in European trade on Monday against a basket of major rivals away from three-month highs on active profit-taking.
The losses are curbed by a surge in US 10-year treasury yields, following a spate of important US data, which could provide clues on the future of US interest rates this year.
The Index
The dollar index fell 0.15% today to 104.18, with the highest since July 30 at 104.57.
The index rose 0.3% on Friday, the fourth profit in five days.
Across last week, the index rose 0.8%, marking the fourth weekly profit in a row.
US Yields
US 10-year treasury yields rose 1.2% on Monday, widening gains for a second session, and hitting three-month highs at 4.292%, in turn pressuring non-yielding assets.
The developments come amid increasing bets that the Federal Reserve will likely take a calmer pace in its policy easing program.
US Rates
According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut in November stood at 95%, while the odds of no changes in interest rates stood at 5%.
Now investors await a batch of US labor data, including job opportunities, private sector employment, and unemployment claims data, in addition to the all-important US payrolls report on Friday.
Investors also await US personal consumption data for September on Friday, which the Fed relies upon heavily to gauge inflation.
US Elections
As the US prepares for the presidential election on November 5, a state of uncertainty spreads in the markets, with recent polls indicating a close race between Donald Trump and Kamala Harris.