Breakfast Bites - Oil spikes on conflict

Rise and shine everyone.

US equity futures are negative this morning pulling back after quite a rally yesterday. The Nasdaq-100 hit a record high. Yields are lower across the curve but the US dollar is marginally stronger giving way to lower Gold. Oil is gaining ground, closing in on $75/bbl on WTI. Oil tankers being rerouted from the Red Sea seem to be having an effect. Bitcoin is stable.

We’re still keeping an eye on the Red Sea issue. Containerized Freight Index Futures soared to their 10% upper limits overnight for the third consecutive session, closing at record highs since their introduction in August.

It's important to note that 10% of global maritime trade and about 8-10% of the world's sea-transported gas and oil traverse the Red Sea and Suez Canal route. This path accounts for an estimated 12-15% of worldwide trade, making up 30% of the global container traffic. The US and UK are moving their naval forces in preparation for possible strikes against the Houthi forces.

Happy Holidays! We’ve just launched our holiday sale with a 30% discount.

For new members, sign up below

Subscribe to Premium to read the rest.