Breakfast briefing: Oil price surge sees financial markets stagger
Global financial markets are reacting to an oil price surge caused by missile attacks on tankers in the Red Sea, leading to higher bond yields and pressure on tech stocks. Meanwhile, US economic data shows a decline in jobless claims, while Asian economies like South Korea report strong growth.
Why it matters
Geopolitical instability in the Middle East is directly impacting global inflation expectations and market volatility, affecting mortgage rates and investment valuations worldwide.
Here's our summary of key economic events overnight that affect New Zealand, with news tankers in the Red Sea have been hit by missiles fired from Yemen. This is unnerving global markets today, and oil prices have jumped everywhere. Bond yields are surging, pushing up mortgage rates and weighing on equity valuations, especially for tech firms.
But first in the US, there were 192,000 initial jobless claims last week, a notable drop and far lower than seasonal factors would have accounted for and lower than expected. There are now 1.85 mln people on these benefits, also lower than a year ago but actually an increase from a week ago as claimants are staying on benefits longer even if it is now much harder to get initially qualified.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in