It's a busy start to the week as markets digest the events happening in Israel. Last week, WTI fell 10% to below $81 but gapped higher on this week's open, as wars in the Middle East add a risk premium to the price. With the OPEC report on Thursday, it looks set to be another volatile week in the oil markets.
The equity markets had a strong rally on Friday but have opened lower as traders reduce their exposure, with the S&P 500 index dropping 30 points. The Fed meeting minutes are released at 21:00 GMT+3 on Wednesday, which will provide traders with insight into whether the Fed will raise interest rates again, which could knock the equity markets further.
The strength of the US dollar has been impressive over the last few months as the Fed has hiked rates. USDJPY hit 150 last week, and an intervention by the Bank of Japan could well be on the cards at these levels. US CPI data out on Thursday at 15:30 GMT+3 could well be the catalyst to push it higher still if the inflation continues to tick back up.
The UK100 has been one of the best-performing indices of late, helped by its large weighting of oil and mining companies. UK GDP released on Thursday at 09:00 GMT+3 is expected to show a minimal expansion, but strong numbers could provide a further boost for the UK market.
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