Trading conditions were choppy last week, but the sentiment soured somewhat in equities and oil continued its downward journey for the third successive week. Potential and in the case of China very real trade restrictions are the sword of Damocles above stock markets.
Like a boxer, sometimes markets must cover up when confronted with big punches. If the left hand of the heavyweight Laughing Boy Trump is bearish by repeating a promise that the US will raise production to bring oil prices down, then the right hand is the bullish announcement of the first sanctions on ships that handle Iranian oil exports to China.
Although the presence of Donald Trump was still keenly felt over our market yesterday, some order was re-established. Focus shifted away from the guessing game, headline trading that shaped investor sentiment lately and genuine worries about the oil balance ensured that the move down, which started in mid-January continues after an upside correction on Tuesday. Headline EIA numbers are to blame.
Copyright © 2025 TP ICAP