Dear investors, welcome to today’s Daily Insights (May 13).
Financial markets experienced heightened volatility yesterday as stronger-than-expected US inflation data and ongoing geopolitical risks weighed on investor sentiment. Below are the key highlights from today’s market:
Equities: Tech Stocks Pressured by Inflation and Geopolitics
US tech stocks closed lower in yesterday’s trading session. The decline was driven by inflation data (CPI) that came in stronger than expected, coupled with investors continuing to price in the growing risk of an end to the ceasefire in the Gulf.
Oil: Prices Surge on Strait Closure Expectations
Oil prices pushed higher once again as traders contemplated the likelihood of the Strait of Hormuz remaining shut for the foreseeable future. Brent Crude rose by +3.18% to $107.52 per barrel, while WTI surged +4.10% to reach $102.00 per barrel.
Gold: Edging Lower into Recent Ranges
Gold prices edged lower, falling -0.43% to $4,713.65 per ounce, dropping back into its recent trading ranges.
FX & Bonds: Yields and Dollar Rise on Hot CPI
Following the stronger-than-expected CPI print, both US Treasury yields and the US dollar pushed higher. This development has further dampened market expectations for any near-term interest rate cuts by the Federal Reserve.
Outlook: Focus on US PPI and Trump’s Visit to China
US Producer Price Index (PPI) numbers are due early in the New York session and will once again take center stage for inflation watchers.
Meanwhile, President Trump’s visit to China adds a significant geopolitical dimension to the markets. With trade, the Iran war, and the situation in the Strait of Hormuz all on the agenda, investors will be closely monitoring any developments from the meetings.
Thank you for reading today’s Daily Insights. We wish you successful trading!
(The content above is for reference only and does not constitute investment advice.)