On Thursday, the 13th of June 2019, both US and UK crude futures surged following confirmation of a military attack on two oil tankers offshore of Iran, while a gauge of global stock indices had added gains despite faltering economic data, as it would support a rate cut bet for the Federal Reserve by September this year.
In fact, financial markets had been anticipating at least two rate cuts by the end of 2019. While Thursday’s (June 13th) Wall St. had winded down higher after falling for two straight sessions and investors had regained some of their risk appetites for riskier assets, a chief market strategist at Prudential Financial in Newark, New Jersey, Quincy Krosby said, “There are still concerns over geopolitical risk.
The market is waiting to hear from the Fed ... and whether they will deviate at all from their latest stance, and I call it an active dovish position, to see if they continue to lay the groundwork for a rate cut perhaps later in the summer”.
Quoting statistics, on Thursday’s (June 13th) market wrap-up, Dow rose by 0.39 percent, S&P added 0.41 percent and Nasdaq gained 0.57 percent, however, S&P curbed some of its gains on extended trading after US Secretary of State, Mike Pompeo had been quoted saying the United States believed Tehran was responsible for the attacks on oil tankers offshore of Iran.
Mounting tension over the Gulf follows a sharp spike on crude oil price, as on Thursday’s (June 13th) market closure, US crude was 2.23 percent up to settle at $52.28 per barrel, while Brent crude futures prices added more than 1 percent to $61.31 a barrel.
Aside from that, the MSCI’s gauge of global index that keeps track of stock exchanges of 47 countries had added 0.06 percent after witnessing a choppy session for most part of the day.