Stock futures fell while oil prices continued to surge as the energy crisis worsens in the Middle East. The armed conflict remains unresolved with more structures hit all over the region. U.S. Diesel prices are no exception climbing to $5.0/gallon for the first time since 2022. Brent Crude in Europe climbed over $103.00/barrel marking now a 40.0% increase in the price of oil since the war began.

As global members scramble to address issues and adjust to the lack of flow in trading fuels, investors and traders are worrying about the huge inflationary effect to handle. Equities globally had very limited movements although European ones at the Stoxx 600 Index were surprisingly up 0.3%. All eyes will be on the Fed tomorrow and Thursday more central bank thinking will come our way.

What to Watch This Week…

• BOJ, BOE, ECB all meet Thursday
• USA Online is always open

The complete Economic Calendar can be found here.

EUR ⇑

The Euro swung back and forth as markets handle the trauma of energy shocks with domestic stocks surprising on the positive. Indeed, the Stoxx 600 Index had a two-day winning streak, the first back-to-back improvement for it since the war started. As investors try seeking refuge from pain in everything else, the shared currency may gain from a little productivity and decent earnings for tech firms. Thursday will be crucial as we get assessments from officials as the war factor takes effect following weeks of damage to commerce.

AUD ⇑

The Australian Dollar naturally climbed a bit after the Reserve Bank of Australia’s decision to raise interest rates for the second time this year. The choice to hike borrowing costs after doing so in their previous meeting marks the first back-to-back rate increase since mid-2023. Experts warn that centra bank officials all over will be more “hawkish” than intended, but they simply cannot think of reducing rates and exacerbate the inflationary problems at hand. The longer the conflict goes on, the more it decreases the odds of stimulus coming anytime soon. It is worth noting that some nations across Asia are already rationing energy and reducing work as well as school hours.