Watch out, you Crude Oil shorts! | MarketTalk: What’s up today? | Swissquote

Show notes

Debt ceiling talks in the US led to some progress, but no deal was reached yesterday.
And even though there is a strong belief that the US politicians are not foolish to trigger a self-induced economic crisis and that they will reach a deal just before time, appetite in risk assets looks weakened. The US 2-year yield spiked to 4.40%, while gold struggled to gather positive momentum, as the US dollar is where investors seek refuge – as absurd as it sounds.
But crude oil performed well on Tuesday despite the US det ceiling shenanigans, as the Saudi Prince Abdulaziz bin Salman warned oil bears to watch out. US crude jumped more than 2% yesterday after his warnings.
In Europe, yesterday’s PMI numbers discouraged euro bulls, while in the UK, the latest CPI fell less than expected by analysts, hinting that the Bank of England (BoE) will unlikely see inflation slump as fast as it expects in the second half of the year, and more rate hikes could be needed in the UK.
But maybe not in New Zealand. Even though the Reserve Bank of New Zealand raised interest rates to the highest levels in more than 14 years pointing at inflation that ‘remains too high’, the bank’s forecasts signaled that its tightening cycle has peaked amid an unexpected GDP contraction of 0.6% in Q4 of 2022 and a subdued near-term outlook for activity.
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