Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
SHARE
The joint strike on Iran is understandably dominating market sentiment this morning. Despite the well-telegraphed build-up of American hardware across the Gulf in recent weeks, Saturday’s intervention took many by surprise, resulting in sharp market movements earlier today. Gold and silver opened with sizeable gaps to the upside this morning, but quickly sought to close them as the session got underway. Gold swiftly came within a few dollars of $5,400 after market open, while silver explored highs of $96 per ounce before retracing the move. Both metals performed admirably last week, with silver in particular gaining 11% by Friday’s close.
Despite the weekend’s dramatic events, markets are not fully committed to a particular direction of travel as of yet. If anything, it appears that many market participants were expecting a larger, more drawn-out conflict, leaving traders somewhat confused as to their next course of action. US stock futures are down, with contracts on all major indices slipping around 0.8%, while the US dollar edged slightly higher against other major currencies. Asian stock markets opened lower this morning, forcing the Nikkei 225 down 1.5% upon hearing the opening bell. Over in cryptocurrencies meanwhile, the weekend’s events have left markets almost completely unfazed, with Bitcoin hovering around $66,000 per coin.
For all the volatility in precious metals, it is nothing compared to the price action in oil markets. Subject as they are to local pressures, Brent futures smashed through $80 per barrel earlier today before settling back to $76 after the dust settled. The more isolated WTI benchmark remains around $70 at the time of writing. While Iran is a significant producer of oil in the region, the bulk of its output is subject to sanctions and is therefore sold via obscure channels that do not necessarily impact global pricing benchmarks. The bigger problem is the Persian Gulf, and in particular the Strait of Hormuz, on which Iran borders and exerts a certain degree of influence. Roughly 30% of all seaborne oil flows through the Strait, the majority of which is destined for East Asia. As a precautionary measure, shipping companies have ordered their fleets to avoid the Strait for now, leaving hundreds of vessels anchored at sea. According to Oman, an oil tanker flying a flag of convenience was attacked on Sunday morning, resulting in the evacuation of all crew members. Markets remain on high alert for any further developments.
Geopolitics aside, there are a number of important events on the economic calendar this week. The Institute for Supply Management will deliver the February PMI figures for the US manufacturing sector later today, followed on Wednesday by a reading on the services sector. Wednesday will also provide an insight into Chinese manufacturing and services, followed by the ADP employment change later in the day. The big employment news of the week arrives on Friday however, with a return to the regularly scheduled non-farm payroll report, which is currently forecasting 60 thousand new jobs. Not much is going on with regard to earnings this week, with the exception of Berkshire Hathaway (BRK) on Monday and Broadcom (AVGO) after market close on Wednesday. Until then, all eyes are on the Middle East.
การซื้อขายตราสารอนุพันธ์และผลิตภัณฑ์ที่มีเลเวอเรจมีความเสี่ยงสูง และอาจทำให้เกิดผลขาดทุนมากกว่าเงินลงทุนเริ่มต้นของคุณ โปรดอ่านข้อกำหนดและเงื่อนไข (T&C) และเอกสาร Product Disclosure Statement (PDS) ก่อนทำการซื้อขาย
เปิดบัญชี