Oil rips to 13-month high
TAKEAWAYS
• US oil price smashes through $60 on Middle East tensions, Texas deep freeze
• Japan’s Nikkei strikes 30,000 for first time in 30 years
• Global stocks (MSCI World index) hit new record, gain for an 11th day straight
• British pound continues rally, GBP/USD > 1.39
• Bitcoin recoups most of Valentines Day drop
• Yen weakens for 4th session, USD/JPY > 105 even as Japan GDP beats expectations
• Gold price slipped
• UK PM Boris Johnson rules out vaccine passports for pubs
• Vivendi stock pops 22% on plan to list Universal Music Group
• DAY AHEAD: RBA minutes, Germany ZEW, Wall Street reopens
GURU WISDOM
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
MARKETS
*Daily closing price
↗ EUR/USD 1.2141 (+0.09%)
↗ GBP/USD 1.3905 (+0.26%)
↗ USD/JPY 105.33 (+0.25%)
↗ S&P 500 3934.83 CLOSED
↗ Hang Seng 30,173.57 CLOSED
↘ Gold 1817.89 (-0.18%)
↗ Oil (Brent) 63.27 (+0.25%)
↗ Bitcoin 48,656 (+0.14%)
NEWS
The price of oil was front and centre again on Monday. US crude futures jumped amid a massive blizzard in Texas that was exacerbated by power failures, leaving many without electricity and shutting down oil refineries. WTI crude oil rose to a 13-month high over $60 per barrel. Brent, the global benchmark crude contract was already higher after the Saudi-led coalition in Yemen said it had intercepted a drone fired by Houthi rebels, stoking geopolitical tensions in the oil-producing region.
Global equity markets hit a record high on Monday in an impressive 11th straight day of gains fuelled by growing earnings expectations following the pandemic – notably in the US and in Emerging Markets. Japan’ Nikkei hit the 30,000 milestone for the first time in three decades, helped by better-than-expected Japanese GDP data for the fourth quarter and a weaker yen.
In forex markets, the dollar edged lower with naturally lower than average volumes given President’s Day holiday. The Aussie dollar remains a top gainer ahead of RBA meeting minutes early Tuesday. While at the same time the British pound remains a 2021 favourite, holding the line above $1.39. Gold prices edged lower despite the weakness in the US dollar as investors shunned haven trades.
DAY AHEAD
*Times in GMT
00:30 – Australia RBA Meeting Minutes
10:00 – Eurozone Gross Domestic Product s.a. (QoQ) (Q4) Prel [-0.7 % Exp vs. -0.7 % Prev]
10:00 – Germany ZEW Survey – Economic Sentiment (Feb) [59.5 Exp vs. 61.8 Prev]