Low-volatility ETFs are gaining appeal as tariffs, Hormuz tensions, AI worries and oil-led inflation fears shake markets. Here are five reasons why.
Europe and parts of Asia, which are more reliant on energy imports, will remain more exposed to global headline inflation. A fresh energy shock would leave the Fed focused on upside inflation risks, OCBC said.
Vessel traffic through the Strait of Hormuz has slumped since U.S. President Donald Trump's blockade took effect last week. Crossings through the Strait have fallen sharply across multiple shipping datasets with renewed U.S. strikes on Iran.
Oil markets continue to be very noisy on Monday, as the headline risks continue to be a major issue.
As the attacks between the US and Iran continue, the average price of gas is now at $4 a gallon. It previously dipped in mid-June, but has since gone back up.
Inflation looked as though it was finally settling into a more manageable pattern, but energy markets have a habit of rewriting the script.
US stock futures pointed higher on Monday as attention turned to a bumper week of Big Tech earnings, even with the US-Iran conflict grinding into its tenth day. Dow futures edged up 0.2%, S&P 500 contracts added 0.3%, and the Nasdaq-100 popped 0.7%, a welcome bounce after a bruising week for semiconductor stocks.
Brent crude oil futures soared above $90 per barrel on Monday but have since settled around $88.10 after Iranian officials signaled openness to dialogue. Esmaeil Baqaei, Iran's Foreign Ministry spokesperson, said the country had received proposals and ideas from various mediators to help quell tensions with the U.S., state media reported.
U.S. stock futures largely inched higher, as investors worried about the further escalation in the Middle East.
Stock futures tick up
Oil rose on rising concerns over supply disruptions in the Middle East.
The number of ships transiting the Strait of Hormuz stayed low during the weekend as the United States and Iran intensified attacks in the Middle East, shipping data showed on Monday.