Market Recap | 27-June-2024

Oil prices dipped on Thursday due to an unexpected increase in U.S. stockpiles fueling fears of slow demand from the world’s top oil consumer, though declines were capped by worries over a potential expansion of the Gaza conflict, which may disrupt Middle East supplies.

This came after the for-motor gasoline, a proxy for demand, fell by approximately 417,000 barrels per day last week, to 8.97 million bpd. The four-week average for demand is about 2% under last year’s levels.

Additionally, Asian shares fell, and bond yields spiked amid inflation worries on Thursday, while the yen’s slide past 10 per dolla6 had currency traders bracing for potential intervention from Japan.

The dollar reached six-week highs against the pound and the New Zealand dollar and traded at 160.4 yen just shy of Thursday’s 38-year peak. The jittery mood left frothy sectors of financial markets especially vulnerable with Nasdaq futures dropping 0.4%.