A stronger case for cheaper oil? | MarketTalk: What’s up today? | Swissquote

Show notes

The US bond yields rebounded, and the equity rally slowed on Monday. The chatter of weak demand and profit warnings are not great for equities, but the worst news would be sticky inflation despite slowing growth and a persistently long period of high interest rates. For now, the Federal Reserve (Fed) is perceived as being ‘done’ with interest rate hikes.
But despite a series of no rate hike news that we received over the past few weeks from major central banks including the Fed, the European Centra Bank (ECB) and the Bank of England (BoE), the Reserve Bank of Australia (RBA) raised its rates by 25bp, as broadly expected, today. The RBA hike came as a sour reminder that there is no rule that says that a bank can’t hike rates after pausing for four meetings. Interestingly, the AUDUSD fell after the decision.
Elsewhere, the Chinese exports fell for the 6th consecutive month and Iranian oil exports fell for the 2nd straight month to 1.43mbpd as demand in Asia weakened. Yesterday’s crude oil gains remained limited, and there is a stronger case for a decline below $80pb level.
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