CNBC Daily Open: Risk-off trade back on for oil
Hello, this is Leonie Kidd writing to you from London. Welcome to another edition of CNBC’s Daily Open.
U.S. President Donald Trump continues to dominate the news cycle, and his latest round with reporters in the Oval Office has yielded more headlines and market moves this morning. It’s only Tuesday and already it’s been a volatile week for oil, which remains the epicenter of trading action.
Market participants — as well as us journalists — will need to stay on their toes to keep up with developments.
What you need to know today
He voiced his frustrations by saying “some are very enthusiastic, and some are less than enthusiastic … and I assume some will not do it.”
Washington, meanwhile, is looking to postpone a meeting between Trump and Chinese President Xi Jinping amid the conflict with Iran. During a press conference in the Oval Office, he said, “There’s no tricks to it either. It’s very simple. We’ve got a war going on. I think it’s important that I be here.”
Back in the Middle East, the United Arab Emirates reopened its airspace on Tuesday after a brief shutdown, as Iran continued missile and drone attacks. The UAE’s Defense Ministry said that air defenses have intercepted more than 300 ballistic missiles and 1,600 drones so far.
The volatility has led to a hike in interest rates from the Reserve Bank of Australia. The central bank raised its benchmark policy rate for a second consecutive time, citing concerns over the inflation risk posed by the war in Iran.
In stock markets, Asia-Pacific equities rose Tuesday as auto and tech stocks gained after Nvidia announced robust revenue forecast for its key chips, and partnerships with carmakers from the region. European and U.S. futures are lacking direction in early trade.
— Leonie Kidd
And finally…
Why traders are getting nervous about Iran’s $200 oil warning
Energy analysts and traders said Monday that they wouldn’t be surprised if oil prices climb to as high as $200 per barrel as the sprawling Middle East crisis drags on.
It comes as the U.S. and Israeli-led war on Iran continues to disrupt oil production and shipping in the region, with traffic through the strategically vital Strait of Hormuz effectively grinding to a halt in recent weeks.
— Sam Meredith
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