Oil declines as Middle East tensions ease and yen falls with Japanese government losing majority
The Japanese yen recorded a three-month low on Monday following the ruling party’s loss of its parliamentary majority, while oil prices saw a significant drop due to geopolitical events in the region.
In other developments, Brent crude futures fell by 5%, reaching $71.99 per barrel. Meanwhile, Japanese markets saw a rise in technology stocks, benefiting from the weaker yen, which bolsters exports.
For other currencies, markets remained stable, putting the U.S. dollar on track to achieve its largest monthly rise in two and a half years, driven by the strong performance of the U.S. economy and speculation around Donald Trump’s potential return to the presidency.
While markets have begun pricing in the possibility of a second Trump term, recent polls indicate a slight lead for Vice President Kamala Harris, with 46% compared to Trump’s 43%.
U.S. stock futures rose by 0.4%, with European markets also seeing slight improvements, supported by positive earnings expectations from major technology companies such as Alphabet, Microsoft, Meta, Apple, and Amazon.
The U.S. jobs report, due early next month, is expected to provide investors with a clearer picture of the economic landscape, especially as inflation indicators in Europe and Australia are awaited.
Gold, which reached record highs last week, remained steady near $2,736 per ounce.
