Oil Rises for Six Days; US CPI in Market Focus
Oil prices strengthened again during Wednesday's trading (August 12) amidst uncertainty regarding the progress of US-Iran negotiations. Brent crude rose approximately 0.3% to US$89.10 per barrel—marking a six-session winning streak—while WTI gained 0.5% to around US$83.58.
Oil prices continued to rise even though Pakistan's Defense Minister indicated that the US and Iran were nearing some form of agreement regarding the Strait of Hormuz. The market remains cautious, however, as both Washington and Tehran continue to maintain hardline stances in these long-running negotiations.
In the stock market, the technology sector continues to show positive sentiment. Shares of CoreWeave surged about 14% after the company raised its business outlook, driven by strong demand for AI infrastructure. Super Micro Computer also climbed more than 7% after issuing revenue projections that exceeded expectations.
Asian markets also traded positively. The MSCI Asia Pacific Index rose approximately 0.4%, while South Korea's Kospi gained 1.5%. US stock index futures edged higher as the performance of technology companies helped offset concerns regarding geopolitical risks.
The market's primary focus is now on the US CPI for July. Consensus estimates suggest headline inflation rose by about 0.1% month-on-month, following a 0.4% decline previously. Lower inflation could reinforce expectations that the Federal Reserve will hold interest rates steady, whereas a hotter-than-expected figure could revive the possibility of a rate hike.
Newsmaker Analysis: The market is currently weighing two major forces: geopolitical risks keeping oil prices elevated and hopes that US inflation is beginning to cool. A "cool" CPI reading could support technology stocks while putting downward pressure on the dollar and bond yields. Conversely, a "hot" CPI—combined with Brent approaching US$90—could reignite expectations of a hawkish Fed stance and weigh on both risk assets and gold. (asd)*
Source: Newsmaker.id
