Global stocks drown as rate cut bet breaths fire, oil up on Tehran tension

by   |  VIEW 225
Global stocks drown as rate cut bet breaths fire, oil up on Tehran tension

On Friday, the 14th of June 2019, a gauge of global equity indexes had rounded off the day lower ahead of a Federal Reserve rate decision scheduled to be released by next Wednesday (June 19th), GMT. 18.00, while a majority of analysts had been quoted saying that the financial markets would likely to tread water until a Fed decision on interest rates.

While investors appeared to be fretted to put their money on a clock tower which could reverse its gear anytime next week over a Fed verdict, a likely US-Iran confrontation had added to geo-political concerns and lifted the crude oil prices higher following attacks on two oil tankers on Thursday (June 13th) offshore of Iran and Oman.

After US President Donald Trump had blamed Tehran behind the military attacks on oil tankers offshore of Iran and Oman, US crude rose by 0.44 percent to $52.51 per barrel despite a havoc-scale upsurge in US inventories, while UK crude added 1.1 percent to $62.01 a barrel.

Upcoming Fed meeting would be pivotal for global money markets, as policymakers’ comments on a possible rate cut had heightened the hope of investors, however, addressing to lingering uncertainties on rate cut that kept large buyers at bay, a director of trading at Performance Trust Capital Partners in Chicago, Brain Battle said, “There’s a lack of information to trade and the magnitude of the importance of the Fed next week can’t be overstated, so you don’t want to put any position on in front of something that has the potential to be such big news”.

Quoting statistics, on Friday’s (June 14th) market closure, all three key indexes of Wall St. was lower following Broadcom’s warning on Huawei ban and London’s FTSE 100 had lost 0.31 percent, while British currency had faltered more than 0.90 percent to 1.25 regions, below its 200 day moving average, a key hurdle that could prompt further downside momentum.

Meanwhile, Germany’s trade-sensitive DAX were down by 0.60 percent on Friday (June 14th) market round off, and Paris bourses remained flatlined, while MSCI’s gauge of global index that monitors financial markets of 47 countries across the world, had shed 0.33 percent and the regional Pan-European STOXX 600 had shrugged off 0.40 percent.