Morning bid Americas: Midterms and mediation
SPY•Reports of U.S. strikes on Iran reversed some of the oil-price decline that followed peace-talk mediation, while investors turned to U.S. midterm elections. The Reserve Bank of Australia raised rates by 25 basis points to 4.85%, its fifth increase this year, and signaled it may be nearing the end of its tightening cycle.
1. Oil and markets
Energy markets were caught off guard by reports of U.S. military strikes on Iran’s Qeshm island in the Strait of Hormuz, which officials described as “defensive.” Crude had fallen about 7% on Monday amid reports of peace-talk mediation, then edged back up after the strikes.
2. Investors watch elections
U.S. midterm elections, labor-market data, earnings and Treasury refunding plans were on investors’ agenda. The article said prediction markets viewed a Democratic sweep of both houses as the most likely outcome, while the Senate race could take days to resolve.
3. Australia raises rates
The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.85%, an 18-year high, in a 6-3 vote. It removed a reference to increasing rates further if needed, signaling the hike may be the last in its cycle.
