US stock markets were soft overnight as the American oil benchmark, West Texas Intermediate crude, climbed 4% to US$105 ($147) a barrel. The international benchmark Brent crude closed at US$108 a barrel.
The Nasdaq fell 0.78% and the S&P 500 dropped 0.45%. Concerns around energy, inflation, and bond yields have been weighing on American stocks lately.
For the metals, gold was down a modest 0.3% to US$4,333 per ounce, while silver crept slightly higher to US$64 per ounce. Copper lifted 0.85% to US$6.45 per pound.
The latest Federal Reserve meeting is underway, with the central bank deliberating on its next interest rate move. Markets are pricing in a 25-basis-point rate hike, with the probability of a hike sitting at about 92%.
If delivered, it would be the first Fed rate hike since 2023. Traders are also watching the future path of monetary policy closely.
For the Australian market, SPI futures rose 31 points, suggesting a mildly positive day for the ASX today.
The Iran conflict and its impact on the ‘real’ economy remains a major concern for investors.
Diesel is trading at the equivalent of US$200 a barrel, causing angst for truckers, farmers, and miners.
The current energy disruption is also causing oil tanker freight rates to skyrocket.
Write to Callum Newman at Mining.com.au
Images: Unsplash
