Oil Prices Soar Above $100, Threatening Global Market Sentiment

The global financial markets are facing increased pressure due to rising oil prices and elevated bond yields. The recent surge in Brent crude oil has pushed it above $100, exacerbating concerns about inflation and its potential impact on central banks' interest rate decisions. This development is particularly concerning for the Federal Reserve, as higher oil prices can push inflation higher while simultaneously squeezing consumers and businesses.

The US dollar retreated further despite the oil gains and stronger payrolls data on Friday, suggesting that the US dollar debasement trade remains alive. Investors are now focusing on key events such as the ECB's interest-rate decision on Thursday, US CPI on Friday, and the latest developments in crude oil prices. The ongoing consolidation phase of the Nasdaq 100 index could turn into a correction if the macro picture doesn't improve soon.

The technical forecast for the Nasdaq 100 index indicates that key support is seen around 29,000 to 29,200, while resistance is offered around the 29,680 area. A break above the 30K level would be a bullish development, considering this lengthy consolidation phase.