Oil rises as the US dollar stabilizes and Asian stocks decline after Wall Street fall

Oil markets increased during morning trading,
with supply pressure, and the greenback stabilized on Tuesday as the euro approached its lowest levels,
while Asian stock markets fell after sharp declines on Wall Street.

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Oil escalates as Saudi Arabia warns of OPEC production cuts

The US dollar stabilizes and the euro declines to the lowest level in two decades.

Asian stocks fall as Wall Street’s losses tracked

Oil escalates as Saudi Arabia warns of OPEC production cuts

Oil rose on Tuesday as renewed concern over a supply shortage
that has dominated market sentiment after Saudi Arabia warned that
the main oil producer could cut production to correct a recent decline in oil prices.

Brent crude futures rose by 93 cents, or 1 percent, to $97.41 per barrel by 0328 GMT,
after a volatile session on Monday when they fell by more
than $4 before curtailing losses to trade near steady.

US West Texas Intermediate (WTI) crude futures rose by 90 cents, or 1 percent, to $91.26.

While the benchmark indices fell by about 12 percent and
8 percent respectively this month,
with concern over the global recession and fuel demand.

Saudi Arabia, the leader of the Organization of the Petroleum Exporting Countries (OPEC),
said on Monday that the Organization of the Petroleum Exporting Countries (OPEC) stands
ready to cut production to correct the recent decline in oil prices.

In the meantime, Europe is facing new power disruption due to damage
to the pipeline system transporting oil from Kazakhstan through Russia,
raising concerns about reduced gas supplies.

The US dollar stabilizes and the euro declines to the lowest level in two decades.

The dollar held steady on Tuesday on the back of safe-haven flows,
while the euro was close to its lowest level in two decades,
as Europe faced energy supply and greater concern over economic growth.

The euro approached its lowest since late 2002 at $0.9926 overnight
and was last slightly higher at $0.9941.

Russia will halt natural gas supplies to Europe via the Nord Stream 1 pipeline
for three days at the end of the month,
as the last reminder of the unstable state of the continent’s energy supply.

Heatwaves on the continent have already put pressure on energy supplies
and concern is growing that any disruption during the winter months
could be devastating for business.

Overnight, sterling also fell to a new 2.5-year low,
stumbling near that level of $1.17715.

In Asian trade, the Japanese yen stabilized at 137.265 against
the dollar after approaching a one-month low of 137.705.

Rapid readings of the euro zone’s manufacturing PMI
will be the first investors focus on Tuesday
and Britain later in the day, providing more clarity on
the growth trajectory for the economies involved.

Investors are also awaiting the minutes of the ECB’s latest policy meeting on Thursday
which is likely to look tough even as the continent faces a slowdown in growth.

The Australian dollar rose by 0.28 percent to $0.6898,
while the New Zealand dollar also rose by 0.28 percent to $0.6190.

The US dollar index held steady at 108.9, against a basket of currencies,
the euro being the most likely to try to break a two-decade high of 109.29 recorded in July.

Benchmark 10-year Treasury yields rose by about 4 basis points
over the week and last stood at 3.0165 percent.

Two-year Treasury yields also rose by about 5 basis points at 3.3102 percent,
as investors’ situation remained unchanged under inflation and Fed control.

artical name Oil rises as the US dollar stabilizes

Asian stocks fall as Wall Street’s losses tracked

Asian stock markets fell Tuesday tracking sharp declines on Wall Street,
with growing expectations that the Federal Reserve
will maintain the pace of sharp rate increases.

High-tech indices, including Hong Kong’s Hang Seng,
Taiwan Weighing Index and South Korea’s KOSPI,
were the worst performers in morning trade,
losing between 0.8 percent to 1 percent.

Wall Street indices fell overnight,
with losses skewed towards technology stocks as investors cut
the sector against higher interest rates.

Despite data released earlier this month showing a slight decline in US inflation,
the majority of traders are now seeking to raise 75 basis points by the Fed in September.

Strong job data coupled with hard-line comments from many Fed officials prompted this idea.

This week’s focus is on Fed Chairman Jerome Powell’s speech at the Jackson Hole symposium,
where the president is expected to dismiss speculation about a possible cautious pivot by the Fed.

Even with inflation falling slightly in July, it remains stuck around 40-year highs.

China’s main Shanghai Shenzhen CSI 300 index fell 0.6 percent,
while the Shanghai Composite Index declined by 0.3 percent.

Stocks in the country rose on Monday after the People’s Bank
of China cut interest rates to stimulate economic growth.

But signs of weakness in China’s economy
are a downward signal for wider Asian markets,
given that the country is a major trading hub for the region.

Japan’s economy faces strong headwinds from higher commodity prices and lower yen value,
with Japan’s Nikkei 225 falling by 1 percent after preliminary data showed Japan’s manufacturing
sector grew at its slowest pace in 19 months in August.

artical name Oil rises as the US dollar stabilizes

Oil rises as the US dollar stabilizes

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