Oil
Oil prices rallied around 5.5% last week. Crude oil has climbed to $51 per barrel. Oil and Asian stocks rose as investors weigh in the likelihood that OPEC will extend supply cuts.
Crude has hit a one-month-high as Saudi Arabia’s energy minister said producers will curtail output for a further nine months.
OPEC members will meet on Thursday to deliberate on supply cuts.
Currencies
JPY
After global markets endured stormy conditions last week, calm has returned, weakening the Japanese yen.
GBP
Sterling is the weakest of all major currencies today as investors weigh in comments from Britain’s Brexit Secretary David Davis, who vowed that the UK would renege on negotiations if the European Union refuse to drop divorce payment which could be up to 100 billion euros.
The pound slumped 0.42% against the greenback, dropping below the psychological level of $1.30. However, the bullish momentum remains strong, which should support GBP in the medium-term.
Major currencies are mostly weaker against the greenback thanks to easing political fears in the US.
Equities
Wall Street has rebounded after last week’s slump.
Global equities have their sights set on record highs as investors bet that growth can withstand political turbulence in Brazil and the US.
S&P 500
Political turmoil in the US sent the S&P 500 1.8% lower last Wednesday, the worst one-day fall in eight weeks. However, investors are betting that US growth will outweigh the political controversy surrounding Donald Trump, may continue to place bullish bets in the US economy’s proxy, the S&P 500.
Additionally, strong performance in US earnings has given investors a concrete reason to remain optimistic.
The increase in oil prices has helped support equities.
