Stocks trade warily in Asia, Brent off six-month top
SPY•Asian stocks were cautious and Brent crude fell 1.9% to $114.48 as investors looked ahead to central bank meetings and major company earnings. Markets expect the Fed, Bank of Japan and European Central Bank to hold rates this week, while New Zealand is widely expected to hike.
1. Markets and oil
Asian stocks traded cautiously on Monday, with Japan’s Nikkei down 0.2% and South Korea’s main index down 0.5%. Brent crude slipped 1.9% to $114.48 after reports of mediation efforts in Tehran; it had risen 6.2% last week to its highest weekly close since mid-2022. Yemen’s Houthi group said it had attacked Saudi Arabia’s East-West crude oil pumping stations and Riyadh airport, with no immediate confirmation from Riyadh.
2. Rates and earnings
Markets expect the Federal Reserve, Bank of Japan and European Central Bank to hold rates this week, while New Zealand’s central bank is widely expected to raise rates. A US core inflation reading is forecast to show prices up 3.1% in September, and economic growth is forecast at a 3.2% annualized pace. Earnings from Alphabet, Microsoft and Amazon are among the week’s highlights, with about one-third of S&P 500 companies due to report.
