Global equities hold near flat as oil rises and earnings approach

what happened

According to Newsmetry API, MSCI’s global equity gauge edged lower on Monday, while the dollar strengthened and oil prices advanced. Attacks on Saudi Arabia outweighed hopes of improved supplies after the US president welcomed fresh Russian diesel exports and a Russia-Ukraine ceasefire.

The US bond market was closed for the Columbus Day holiday, leaving investors cautious ahead of September inflation data and the start of the third-quarter earnings season. JPMorgan and Goldman Sachs are scheduled to report on Tuesday, followed by Bank of America on Wednesday. Treasury yields reached 24-year highs this month as elevated energy costs increased concern that inflation could remain persistent.

At 10:43 a.m. ET, the Dow Jones Industrial Average gained 248.59 points, or 0.49%, to 51,907.31. The S&P 500 slipped 3.84 points, or 0.05%, to 7,807.55, while the Nasdaq Composite fell 90.35 points, or 0.33%, to 27,274.78. MSCI ACWI declined 0.06% to 1,146.58, while the pan-European STOXX 600 rose 0.61%.

Higher energy costs are expected to lift the Consumer Price Index by 0.6% monthly and to 3.7% annually; core CPI is forecast at 0.2% and 2.5%, respectively. The dollar index rose 0.24% to 102.44, the euro fell to $1.1175 and the dollar advanced to 158.67 yen. US crude climbed 2.14% to $93.82 a barrel, Brent gained 2.13% to $106.95, and spot gold fell 0.62% to $4,167.98 an ounce.

why it matters

Higher oil prices add to concerns that inflation may stay elevated, potentially keeping central banks cautious about easing. Upcoming US price data and bank earnings are therefore important for bond yields, equity valuations and currency trading.

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