Oil Prices Surge Above $100, Global Market Sentiment Dampened
The global market is experiencing turmoil due to rising crude oil prices above $100. The surge in oil prices, attributed to persistent hostilities in the Middle East, has pushed bond yields higher and dampened market sentiment.
The increased energy price shock has renewed concerns about a potential rate hike by the Federal Reserve ahead of key data releases related to producer price inflation on Thursday and consumer price inflation on Friday.
The CME FedWatch tool shows that the likelihood of a rate hike by the Federal Reserve on September 16 is at 62.4 percent, up from 59.4 percent the previous day.