Oil Prices Fall for Fourth Day, Boosting Global Markets
Global markets are showing signs of relief as oil prices continue to fall for a fourth consecutive day, hitting US$100 per barrel. Brent crude has been trading at around this level, with some reports suggesting that supply through the Strait of Hormuz is increasing.
The lower oil prices have driven down global rates and boosted equity markets, with strong gains seen in the US. The Euro Stoxx 600 index closed up 1% on Monday, while the S&P 500 is currently up 1.5%. The Nasdaq has also risen by over 2%.
Currency movements have been modest, with the NZD trading around 0.5720. The yen has been the weakest of the majors since last week's close, losing some ground after reported 'rate checks' aimed at quelling speculative activity.
Meanwhile, diplomatic efforts to halt the conflict in the Strait of Hormuz appear to be gaining momentum. President Trump said he would likely meet with Iranian President Pezeshkian on the sidelines of the UN General Assembly in New York this week.