The post was subsequently deleted, and in a media briefing, White House press secretary Caroline Levit denied the claim, triggering an unwind of the initial move.
Market Scoreboard
Oil prices have continued to oscillate between gains and losses, though both WTI and Brent are down more than 3% this morning. I think this latest price drop is on the back of WSJ news reporting that the IEA – International Energy Agency – has suggested its largest-ever release of oil reserves.
For key US Stock benchmarks, Tuesday’s session wrapped up largely off best levels; the S&P 500 eased lower by 14 points (0.2%) to 6,781, the Nasdaq 100 shed 10 points (0.04%) to 24,956, and the Dow Jones dipped 34 points (0.1%) to 47,706.
356 Stocks lost ground in the S&P 500 versus 147 to the upside, while GICS sector performance shows only 2 in positive territory and 9 in the red, with energy taking the biggest hit.
Across FX, although giving up some of its gains, the USD’s strength remains bolstered by a combination of haven demand, the rise in Oil prices, and the dialling back of Fed rate-cut expectations. The AUD also caught a healthy bid in recent trading and remains higher versus G10 peers as of writing (see performance chart below). This strength came on the back of comments from RBA Deputy Governor Andrew Hauser, who noted that rising energy prices pose an upside risk to price pressures and that the economy is strong in many respects. As you would expect, this has prompted a hawkish repricing in money markets, with investors now assigning around a 70% chance of an RBA rate hike next week, up from 62% the previous day and a whopping 35% probability a week ago.
