Key insights
- US indices are up slightly, but oil is rising faster, seemingly driven by a weakening USD. Geopolitical tensions in the Middle East, specifically potential Israeli actions impacting energy infrastructure, are a key factor. This undermines any positive sentiment from easing tensions and suggests a bearish undercurrent due to energy price pressures and geopolitical risk.
Right now oil has risen more than the indices. It appears to be the effect of the USD falling. There are "news" about the stocks going up due to the tensions easing. That may not be the actual reason unless the market thinks Israel pre-empting the U.S. again by bombing energy infrastructure before potential talks thereby undermining Trump's postponement of his threats is a good thing.
Other currencies gaining against the US dollar today by 0.5%