Airline stocks, currencies of oil-importing countries and bond yields are just some of the asset classes that are already starting to reflect the reality of Brent at $95 a barrel. Meanwhile, strategists at Goldman Sachs Group Inc. and Barclays Plc released macroeconomic reports telling clients how to trade the energy price shock.
With three central bank meetings still to come this week, energy and its potential impact on inflation and economic growth have become the most important topic of conversation on Wall Street.
“One of the most obvious impacts would be if oil prices derail the disinflation trend and prevent central banks from cutting rates as soon as markets hope,” said Michel Menigoz, head of management. equities and balanced at Sanso Investment Solutions in Paris. .
Ascendant of the dollar
Energy is driving a wedge between the currencies of oil importers and exporters. “Almost all currencies weaken against the dollar following an oil shock,” wrote Themistoklis Fiotakis, head of foreign exchange research at Barclays.
In particular, the euro, Japanese yen, Swedish krona and other east-central currencies are vulnerable, he said, adding that a handful of other exporting countries, such as Brazil and Canada , might be able to weather the broader storm.
Airline Stocks
Costlier fuel is weighing on airline profits, prompting investors to sell travel and logistics stocks. The 10-member S&P Supercomposite Airlines Index has fallen 20% since mid-July, making it one of the hardest-hit segments of the stock market in recent months.
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Airline stocks, currencies of oil-importing countries and bond yields are just some of the asset classes that are already starting to reflect the reality of Brent at $95 a barrel. Meanwhile, strategists at Goldman Sachs Group Inc. and Barclays Plc released macroeconomic reports telling clients how to trade the energy price shock.
With three central bank meetings still to come this week, energy and its potential impact on inflation and economic growth have become the most important topic of conversation on Wall Street.
“One of the most obvious impacts would be if oil prices derail the disinflation trend and prevent central banks from cutting rates as soon as markets hope,” said Michel Menigoz, head of management. equities and balanced at Sanso Investment Solutions in Paris. .
Ascendant of the dollar
Energy is driving a wedge between the currencies of oil importers and exporters. “Almost all currencies weaken against the dollar following an oil shock,” wrote Themistoklis Fiotakis, head of foreign exchange research at Barclays.
In particular, the euro, Japanese yen, Swedish krona and other east-central currencies are vulnerable, he said, adding that a handful of other exporting countries, such as Brazil and Canada , might be able to weather the broader storm.
Airline Stocks
Costlier fuel is weighing on airline profits, prompting investors to sell travel and logistics stocks. The 10-member S&P Supercomposite Airlines Index has fallen 20% since mid-July, making it one of the hardest-hit segments of the stock market in recent months.
Download the Economic Times News app to get daily market updates and live business news.
Most Trending Stocks: Sensex Today Live, SBI Stock Price, Axis Bank Stock Price, HDFC Bank Stock Price, Infosys Stock Price, Wipro Stock Price, Stock Price NTPC action
