Oil Surges Past $100, Carry Trade Unwind Weighs on Stocks as Apple Prepares Foldable iPhone Launch
The price of oil has surged, breaking above $100 for Brent crude. This is an important psychological mark and could have significant implications for markets.
The recent increase in oil prices can be attributed to the US destroying four tankers belonging to Iran as a response to Iran's attempt to attack US warships. Rising oil prices are raising concerns about inflation, which is already causing yields to rise.
In related news, some funds are beginning to unwind their carry trade positions due to a rising yen. The carry trade involves borrowing hundreds of billions of dollars in Japan to invest in the US, often in sectors like AI.
Apple Inc (AAPL) is another significant story as investors have been hiding in AAPL stock. The company is expected to launch its $2000 foldable iPhone today under new CEO Jon Ternus.