Peaceful week kickoff: oil and gold face pressure

As the new trading week begins, the atmosphere in the financial markets remains relatively calm, devoid of any major macroeconomic events that could stir significant shifts in global financial sentiment.

Stock Market

However, amidst this tranquility, Asian markets are demonstrating resilience, with most indices trending upwards. The People's Bank of China (PBoC) has opted to maintain stability by keeping the annual prime rate and the five-year basic interest rate unchanged, consistent with market expectations. Similarly, European markets are gearing up for a slightly positive opening, as indicated by futures contracts.

In the forex market

early movements are subdued, with minimal fluctuations observed among major currency pairs. Notably, the Australian dollar (AUD) and New Zealand dollar (NZD) emerge as standout performers, displaying strength against other major currencies.

Gold

Prices experience a slight decline today, buoyed by hopes of easing geopolitical tensions. This pressure is further compounded by elevated US bond yields and reduced expectations of a Federal Reserve rate cut.

Oil

Conversely, WTI oil prices witness a downturn amid diminishing geopolitical tensions in the Middle East. This decline is exacerbated by the recent passing of new sanctions on Iran’s oil sector by the US House. Additionally, the hawkish sentiment surrounding the Federal Reserve's monetary policy exerts further pressure on the outlook for crude oil.