Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Oil prices fell by 1% on Monday amid easing geopolitical tensions in the Middle East and growing expectations of increased supply from OPEC+. Brent crude futures slipped 66 cents, or 0.97%, to $67.11 per barrel by 0031 GMT ahead of the August contract’s expiry, while the more active September contract dropped 83 cents to $65.97. U.S. West Texas Intermediate (WTI) crude declined by 94 cents, or 1.43%, to $64.58.
Despite the recent dip, both Brent and WTI are on track to close June with their second straight monthly gain of over 5%, although last week marked their steepest weekly losses since March 2023.
The decline follows the resolution of a 12-day conflict that began on June 13 when Israel attacked Iran’s nuclear sites, prompting U.S. airstrikes. Brent prices had surged past $80 during the height of the conflict but plunged after President Donald Trump brokered a ceasefire between Israel and Iran. Analysts, including IG Markets’ Tony Sycamore, noted the market has now largely priced out the geopolitical risk premium.
Adding to the bearish sentiment, four OPEC+ delegates revealed the group is likely to increase crude output by 411,000 barrels per day in August—continuing a pattern of monthly hikes that began in April. The next OPEC+ meeting is scheduled for July 6.
Meanwhile, in the U.S., oil rig counts—a key indicator of future production—fell by six to 432 last week, the lowest level since October 2021, according to Baker Hughes. This decline suggests potential constraints on domestic output even as global supply pressures mount.
The combination of supply-side optimism and reduced Middle East tensions is currently driving oil markets lower, shifting focus back to fundamentals.
