Oil prices are rising after renewed U.S. sanctions on Iran kick in

  • Oil prices are rising after renewed U.S. sanctions on Iran kick in
    Independent.t. E.
    In commodities, oil continued its rally from the previous day after the introduction of the United States came into force on Tuesday sanctions against the largest exporters of crude oil of Iran.
    https://www.independent.ie/business/world/oil-prices-rise-after-renewed-us-sanctions-on-iran-kick-in-37191830.html
    https://www.independent.ie/business/world/article37191832.ece/7f99b/AUTOCROP/h342/2016-01-07_bus_15869274_I1.JPG

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In commodities, oil continued its rally from the previous day after the introduction of the United States came into force on Tuesday sanctions against the largest exporters of crude oil of Iran.

Benchmark futures on crude oil Brent crude shook off earlier weakness and was 0.33 PC higher to $73.99 per barrel. They got 0.75 PC on Monday after the OPEC sources said Saudi production fell unexpectedly in July.

Copper struggling under the weight of trade tensions and the strengthening of the U.S. dollar. Three-month copper on the London metal exchange was little changed at $6,132.50 per ton after the retreat of more than 1pc on Monday.

A rebound in the battered Chinese stock markets on Monday helped lift Asian stocks, which also received support from the earnings-Led trading of the conflict arrived on wall street in a welcome relief for investors struggling with the strengthening of Sino-us.

  • Read more: Barclays voice concern about the impact of Washington’s threats to Russian banks

Early European shares to open slightly higher, with Britain’s FTSE rising 0.1 PC, Germany’s DAX advancing 0.15 PC and the CAC add 0.13 PC.

The broad MSCI index of Asia-Pacific shares outside Japan was up 0.35 PC.

The Shanghai Composite index rose 1.4 PC as investors snapped up stocks that suffered during a four-day losing run.

Chinese stock market expected to remain volatile as trading in a feud with Washington, Beijing showed little sign of de-escalation.

South Korea’s kospi rose 0.3 PC and Japan’s Nikkei added 0.6 PC.

The three major US stock indexes closed higher Monday amid a strong earnings season of American companies, Berkshire Hathaway impressive and Facebook lifting the Nasdaq after a report it was planning new services.

“Global markets (Genesis) suffer from contradictory trends. Bottom-up view of the world from a corporate point of view is positive, led by American companies,” wrote Michael McCarthy, chief market strategist at CMC markets.

“However, there is a growing potential for trade disputes the slowing global economy restrains the enthusiasm of investors.”

The dollar got support from continued international trade frictions. Its index against a basket of six major currencies rose to a near three-week high 95.515 before slightly pulling back to 95.335.

Some analysts believe that the trade dispute in favor of the US dollar as the country’s economy is in a better position to cope with protectionism than developing markets, and how tariffs can reduce the trade deficit of the United States.

Weakness in their peers to further strengthen the us dollar.

The Euro fell to a five-week low of 1.1530 dollars, burdened by fears that Italy may increase costs and challenge the European norms of the Federal budget and the fall in German industrial orders in June. The last time the single Currency traded at $1.1556.

The pound sterling also on the back foot, Driven on Monday to $1.2920, the lowest level since September 2017, after review officials have raised concerns the UK would crash out of the EU without securing a trade agreement. Sterling was at $1.2944.

The dollar was steady at 111.33 yen after rising 0.1 PC for the night.

Was a big mover Turkish Lira, which has struggled near a record low fell on Monday after Washington said it is considering the question of Ankara’s duty-free market access to the United States, as tensions between the two allies increased.

Lira lost this year 27pc paintball of its value, got it in the first place concerns about President Tayyip Erdogan for more control over monetary policy.

“At present, the impact of the slide Lira is mainly in the country. But fear of default starts to rise, if the Currency continues to depreciate, and such development could affect some European financial institutions,” said Kota Hirayama, senior economist of emerging markets on the website smbc Nikko securities.

“The Turkish Central Bank will have to move quickly to raise interest rates to arrest the fall of the Lira before it becomes too late.”

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