The price of European Brent crude oil briefly climbed above the 100 dollar per barrel mark on Wednesday. Since the beginning of the year, the Brent price is thus already up around 64 percent. The background for the latest increase is likely to have been the clashes between the US and Iran over control of the Strait of Hormuz. According to its own statements, the US military destroyed five Iranian crude oil tankers and sank one.
For DAX investors, the ECB central bank meeting scheduled for tomorrow is likely already casting its shadow. At the same time, attention span remains high in view of the upcoming publication of new US inflation data.
Oil price (Brent)
US Secretary of State warns of further attacks by Iran
US Secretary of State Marco Rubio had warned Tehran against further attacks. „Iran continues to try to attack US Navy ships, and every time they do or try to do so, they will lose tankers,“ Rubio said during a visit to Colombia.
The Strait of Hormuz remains the central flashpoint of conflict between Iran and the USA. Iran continues to block traffic in the strategically vital strait through threats as well as attacks on ships.
All eyes on the ECB on Thursday – US price data likely to send monetary policy impulses
During the remainder of the trading week, investors will focus in particular on the ECB central bank meeting on Thursday. The key interest rate decision is expected at 2:15 p.m., followed by the press conference with Christine Lagarde at 2:45 p.m. The deposit rate could potentially be raised by another 0.25 percentage points, just as it was in June. In between, US producer prices await investors (2:30 p.m.).
The US producer prices on Friday (2:30 PM) are likely to determine the success or failure of the stock market week. If economists are right, the inflation rate in August (compared to the same month last year) is likely to have been 3.4 percent, and thus as high as in July. However, compared to the previous month, an increase of 0.4 percent is expected (previously: 0.1 percent).
Next week Wednesday (Sep 16), the US Federal Reserve (Fed) will decide on the future level of the benchmark interest rate. According to data from the CME Group's „Fed Watch Tool,“ 62.4 percent of market participants expect a 25-basis-point rate hike, and 37.6 percent expect another rate pause.
DAX
