Markets Rebound as Oil Prices Slide and Rate Hike Expectations Ease
Global markets rebounded on Friday as crude oil prices slid and bond yields eased. The improved sentiment was also driven by declining expectations of a rate hike from the Federal Reserve in October, with the CME FedWatch tool indicating that only 69% of experts now expect a quarter percentage point increase.
The drop in oil prices was largely due to reports that the US and Iran were exploring a phased deal to reopen the Strait of Hormuz. This development helped Brent Oil Futures (Nov) fall by over 1.2%, while Crude Oil WTI Futures (Nov) dropped by nearly 2%.
The six-currency Dollar Index slipped as the Japanese yen rebounded, but other major currencies showed gains. The EUR/USD rose by 0.1%, and the GBP/USD increased by 0.12%. Meanwhile, gold prices surged by over half a percent, with Gold Futures (Dec) reaching $4,330.55.
Cryptocurrencies also rebounded, with Bitcoin rising by 1.58% to $84,570.60 and Ethereum gaining 2% to $2,694.31.