Morning Report

Morning Report PDF (PDF 269KB)

Key themes:

• The further escalation of the conflict in the Middle East over the weekend saw Brent crude open well above the $100 mark yesterday. It rose to fresh highs after Mojtaba Khamenei, the son of the late supreme leader Ayatollah Ali Khamenei, was chosen as Iran's new leader.
• Market pressures eased after the G7 committed to taking necessary steps to support global energy supply, and President Trump commented that the war is pretty much complete. Brent fell to around $90 this morning.
• Most equity benchmark indices were flashing red during Asian trading hours. The S&P 500 opened 1.5% lower but recovered throughout the day.
• The 10Y US Treasury yield surged to 4.21% from around 4.14% on Friday as investors considered the inflationary impact of rising energy costs. As concerns eased, the yield fell to 4.11%.
• After dropping below 0.70 yesterday, the AUD rebounded, rising to around 0.7070, up 0.6% for the day.