Oil Tops $100 as Global Markets Brace for ECB Rate Hike and US Inflation Data
Global markets are bracing for the European Central Bank's second interest rate hike of the year and key US inflation data on Thursday, as oil prices top $100 a barrel. Brent crude futures rose to $102 a barrel after breaking through the $100 threshold on Wednesday, driven by escalating attacks in the Middle East that raise concerns about a prolonged conflict and further inflationary pressure.
The ECB is expected to raise rates later in the day, with attention turning to President Christine Lagarde's guidance on whether further increases could follow. Markets currently see ECB rates reaching 2.74% by December, implying almost two 25-basis-point increases, as well as a 40% probability of another increase next year.
US Treasury yields also remain elevated, with the benchmark 10-year yield edging up to 4.85%. The move follows an eventful previous session in which the Treasury Department announced a $6 billion buyback of longer-dated bonds that disappointed some investors.