Market Overview August 11: Brent Breaks $89 Due to Hormuz Strait, Gold at $4,400, and Markets Hold Steady Before US CPI
Global markets are trading cautiously ahead of the release of July inflation data in the US. Additional pressure is created by rising oil prices amid tensions surrounding the Hormuz Strait. Expensive energy amplifies inflation risks.
Global markets are trading cautiously ahead of the release of July inflation data in the US. Additional pressure is created by rising oil prices amid tensions surrounding the Hormuz Strait. Expensive energy amplifies inflation risks and may influence the Fed's future policy.
Calm Before the Records: Wall Street Slips, Asia and Europe Remain Cautious
US: American indices are holding near record levels but finished the session with a slight pullback. Sell-offs in tech were offset by gains in the energy sector following commodity markets.
Europe and Asia: DAX and CAC 40 symbolically added 0.1–0.2%, FTSE 100 remained at 10,865 amid concerns over energy costs. In Asia, Hang Seng dropped by 0.5–0.6%, and the Tokyo exchange was closed due to a holiday.
Brent Soars to $89, Gold Storms Towards $4,400
Oil: Commodity prices are showing a confident rise: Brent has climbed to $88–89 per barrel, WTI has exceeded $82. Drivers include stalled negotiations between the US and Iran and risks to shipping in the Hormuz Strait.
Gold: Safe-haven assets are in high demand: gold is trading in the range of $4,365–4,400 per troy ounce due to geopolitical background and uncertainty surrounding Fed decisions.
US 10-Year Yields Rise to 4.72%, Yen Falls Above 159
Currencies and Rates: DXY is steady at 99.7 points ahead of the inflation release. The USD/JPY pair has exceeded 159.00, nearing the threshold for new interventions. The Reserve Bank of Australia maintained the rate at 4.35%.
Bonds: The yield on 10-year US Treasuries rose to 4.72% due to concerns that the spike in oil prices will prolong inflationary pressure.
Key Factors of the Day:
| Factor | Market Impact |
|---|---|
| US CPI | The main trigger of the week: high figures will strengthen hawkish expectations from the Fed, weak ones will support stocks and lower yields. |
| Hormuz Strait | Geopolitics surrounding Iran continues to drive oil prices and transmit inflation risks. |
| Central Banks | The RBA's decision to maintain the rate (4.35%) while keeping a hawkish tone due to the threat of renewed price increases. |
Summary: The market is in wait mode. American indices are holding around record levels, but rising oil and yields limit further movement. Gold remains strong, the dollar is stable, and the main event for the markets is the release of inflation data in the US.