Oil prices slump 5.5% on hopes the tit-for-tat strikes between Israel and Iran might not escalate. The yen falls on uncertainty about a new Government in Japan, and gas prices are rising as European buyers hunt for LNG supplies for the European winter.
In our bonus Deep Dive interview, ANZ Commodity Strategist Soni Kumari explains why China is stockpiling copper as a strategic metal.
5 things to know:
Oil prices fell 5.5% overnight after Israel’s latest airstrikes on Iran appear not to have hit oil infrastructure or any nuclear facilities. ANZ’s Senior Commodity Strategist Daniel Hynes says Iran’s measured response drove sentiment.
The yen fell sharply against the US dollar in the wake of election results in Japan that have created doubt about the makeup of the Government. ANZ Head of FX Research Mahjabeen Zaman says officials may try to jawbone the yen back up.
Mahjabeen warns against expectations of full intervention.
Mahjabeen also thinks the Bank of Japan will hold off a supportive rate hike at its meeting on Thursday.
Despite falls in oil prices, gas prices are falling globally. Daniel says there’s increasing pressure on Europe to buy LNG in the absence of Russian supplies, and increasing risks to oil and gas infrastructure in Russia.
Cheers
Bernard
PS: Catch you tomorrow with a look ahead at the UK budget and US GDP figures due on Wednesday.
