Hello Morning Bid readers!
Global equities are being weighed down this morning by weakness in U.S. bank stocks. Concerns are mounting about looming credit risks, following negative announcements from two regional banks and recent auto bankruptcies.
Meanwhile, gold remains on track for its best week in 17 years, rising above $4,300 per ounce early on Friday. ROI editor-at-large Mike Dolan asks whether gold’s epic rise may be the bubble investors should be worried about.
The dollar index is moving in the opposite direction. The greenback is set to record its biggest weekly slump in almost three months, weighed down by expectations of more Federal Reserve easing. However, ROI markets columnist Jamie McGeever argues that the dollar bull case may be more compelling than you think.
In global news, tensions between Washington DC and Beijing have been back in the headlines following a spat over export controls on rare earth minerals. ROI Asia Commodities Columnist Clyde Russell argues that China risks overplaying its hand with curbs on metals and minerals vital to the global energy transition.
In energy markets, oil prices look set to fall for the week as the market continues to face forecasts of a supply glut in the coming year. However, ROI Energy Columnist Ron Bousso points out that uncertainty over the whereabouts of almost 1.5 million barrels per day of crude oil is throwing this projection into doubt.
The oil market is also reacting to the surprise announcement that President Donald Trump and Russian President Valdimir Putin have agreed to hold another summit on the war in Ukraine, this time in Budapest.
While a quick resolution to this multi-year conflict remains unlikely, the recent strikes by Ukraine and Russia on each other’s energy infrastructure may mark a new stage in the war. Ron Bousso argues that this should be a wakeup call to Europe about vulnerabilities in its own energy systems.
On the renewables side, ROI Energy Transition Columnist Gavin Maguire highlighted seven potentially “magnificent” clean energy stocks that have been on a tear this year despite the Trump administration’s rollback of clean energy policies.
As we head into the weekend, check out the ROI team’s recommendations for what you should read, listen to, and watch to stay informed and ready for the week ahead.
I’d love to hear from you, so please reach out to me at anna.szymanski@thomsonreuters.com.
