Precise Investors Editorial Team
Oil markets were cautious as Brent gained 0.8% to $104.01 a barrel
Asian markets were in a wary mood on Monday as hostilities in the Gulf kept oil prices elevated, complicating an inflation outlook that should keep some of the world’s central banks on pause at policy meetings this week, barring one possible hike.
Oil markets were cautious as Brent gained 0.8% to $104.01 a barrel, while U.S. crude dropped 0.2% to $98.48.
Central banks in countries such as Japan, Australia, Canada, Switzerland, Sweden, Europe, UK and the U.S. hold their first full meetings since the start of the Middle East war, with energy prices looming over all of them.
Central bank forecasts will immediately bias towards higher inflation and lower growth, said Bruce Kasman, chief economist at JPMorgan. Consistent with this view, we have pushed back or removed action for most central banks that were expected to move in March and April.
Developments on the ground highlight the potential for further price increases and the likelihood that the risk premium will remain elevated, he added.
Nikkei dropped 0.8%, while South Korean stocks advanced 0.2% after both lost ground last week. MSCI’s broadest index of Asia-Pacific shares outside Japan edged down 0.1%.
Chinese blue chips eased 0.5% as data showed retail sales and industrial output for January and February topped forecasts, while house prices continued to slip.
Top Chinese and U.S. officials are also meeting in Paris to discuss potential deals in agriculture, critical minerals and managed trade for Chinese President Xi Jinping and Trump to consider when the U.S. president visits Beijing.
For Europe, EUROSTOXX 50 futures and DAX futures both advanced 0.2%, while FTSE futures gained 0.3%.
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