Brent extends recovery after US sanctions on Iran
International benchmark Brent rose in American trade on Monday away from five-week lows on short-covering, amid concerns about a dip in Iranian crude exports after a new wave of US sanctions on Tehran.
It comes despite mounting trade tensions as US President Donald Trump threatened to impose additional tariffs on most major economies, which cast a shadow on global growth prospects.
Prices
Brent rose 1.6% today to $75.73 a barrel, with a session-low at $74.52.
Brent closed Friday 0.6% higher, marking the first profit in three days away from a five-week trough at $74.14.
Global oil prices lost 3% on average last week, marking the third weekly loss in a row on global demand concerns and higher US inventories.
New US Sanctions on Iran
The US Treasury Department said it imposed new sanctions on a number of individuals and oil tankers that help ship millions of barrels of Iranian crude yearly to China, in another step aimed at increasing pressures on Tehran.
Trump's Tariffs
President Donald Trump announced a new batch of 25% tariffs on steel and aluminium imports, rattling the global markets.
He recently suspended a 25% tariff on Canadian and Mexican imports last week pending negotiations, but went ahead with implementing a 10% additional tariff on Chinese imports, triggering vows of retaliation.
It’s feared that Trump’s tactics could disrupt global growth and demand on energy, which would drag prices down.
Bitcoin climbs 1.5% but momentum wanes
Bitcoin rose 1.5% on Monday as the week opens up, however, momentum remains weak in the crypto market due to concerns about Trump’s tariffs.
Additionally, the odds of a Fed rate cut in March plunged recently, with investors now awaiting a testimony by Fed Chair Jerome Powell later today, in addition to more data this week to gather clues about the path ahead for Fed's monetary policies.
The Price
Bitcoin rose 1.5% at Bitstamp today to $97,962, with a session-low at $95,307.
On Sunday, bitcoin was little changed after hitting a week low earlier in the session at $94,726.
Bitcoin lost 1.25% last week, the second weekly loss in a row on profit-taking away from a record high at $109,356.
Crypto Market Value
The market value of cryptocurrencies rose by $90 billion on Monday to a total of $3.313 trillion as most cryptocurrencies gained ground today.
Trump's Tariffs
President Donald Trump announced a new batch of 25% tariffs on steel and aluminium imports, rattling the global markets.
He recently suspended a 25% tariff on Canadian and Mexican imports last week pending negotiations, but went ahead with implementing a 10% additional tariff on Chinese imports, triggering vows of retaliation.
US Rates
The recent payrolls report showed the US economy added less jobs than expected, with unemployment falling slightly in December.
Following the data, the odds of a 0.25% Fed rate cut in March plummeted to just 6.5%.
US dollar gains ground as Trump imposes new tariffs
The US dollar gained ground in European trade on Friday on track for the third profit in a row as President Donald Trump threatens new tariffs on a variety of products.
The dollar is also boosted by the decreasing odds of a Fed interest rate cut in March, with investors awaiting a testimony by Fed Chair Jerome Powell later today, in addition to more data this week to gather clues about the path ahead for Fed's monetary policies.
The Index
The dollar index rose 0.3% today to 108.44, with a session-low at $108.09.
On Friday, the index rose 0.35% as US yields rebounded following the payrolls report last week.
The index lost 0.4% last week, the third weekly loss in the past four weeks on aggressive profit-taking away from a 26-month peak.
Trump's Tariffs
President Donald Trump announced a new batch of 25% tariffs on steel and aluminium imports, rattling the global markets.
He recently suspended a 25% tariff on Canadian and Mexican imports last week pending negotiations, but went ahead with implementing a 10% additional tariff on Chinese imports, triggering vows of retaliation.
US Rates
The recent payrolls report showed the US economy added less jobs than expected, with unemployment falling slightly in December.
Following the data, the odds of a 0.25% Fed rate cut in March plummeted to just 6.5%.
Silver climbs anew towards 3-month high on haven demand
Silver prices rose in European trade on Monday after a two-day hiatus from gains, thus approaching three-month highs once more on strong haven demand amid concerns about global trade after new tariffs by US President Donald Trump.
The white metal is bolstered by retail demand, as its price remains far from its true value compared to gold, which recently hit a record high at $2900.
The Price
Silver prices rose 1.7% today to $32.34 an ounce, with a session-high at $31.70.
On Friday, prices lost 1.3% away from a three-month high at $32.66.
Silver rose 1.6% last week, marking the third weekly profit in a row on strong haven demand.
Trump's Tariffs
President Donald Trump announced a new batch of 25% tariffs on steel and aluminium imports, rattling the global markets.
He recently suspended a 25% tariff on Canadian and Mexican imports last week pending negotiations, but went ahead with implementing a 10% additional tariff on Chinese imports, triggering vows of retaliation.
Retail Demand
As retailers seek assets to safeguard against risks due to changing monetary policies by global central banks towards quantitative easing, it looks like silver is becoming a favorite.
The white metal is far from its record highs, which gives it a lot of room to grow and rise, especially as gold prices hit record highs recently at $2906 on February 10.
For comparison, the last record high scaled by silver is far away at $49.78 an ounce in April 2011.