Dow Jones stock markets futures rose in early trading as investors weighed ceasefire discussions in the Iran conflict against fresh economic data.
S&P 500 futures picked up about 0.3 percent, while Nasdaq contracts climbed, and Dow futures inched higher, as reported by Bloomberg and AP.
Brent crude hovered near $108 a barrel with trading thin after holidays, and oil moves through the Strait of Hormuz remain central to market concern.
Strong US payrolls data pushed back hopes for near term rate cuts, and Citigroup shifted its expected first cut to September, as reported by Reuters.
Jamie Dimon warned that disruption to oil flows could lead to stickier inflation and higher interest rates, a point made in the Wall Street Journal report.
Market Reactions Risks And Near Term Outlook
Traders described markets as nervous, a sentiment captured by Sim Moh Siong, currency strategist at OCBC, who said markets were obviously nervous, as reported by Reuters.
Analysts noted Asian stocks showed resilience despite the shock, which Mark Matthews of Bank Julius Baer called puzzling, as reported by Reuters.
Spot premiums for US WTI crude bound for North Asia surged to $30 to $40 per barrel for July shipments, and buyers are seeking Atlantic Basin barrels, as reported by Reuters.
Energy majors fell in premarket trading, with Exxon Mobil down about 1.3 percent, Chevron off about 1 percent, and Occidental Petroleum shedding about 1.7 percent, as reported by Barron’s and Reuters.
Trading remained thin with many markets closed for holidays, which likely limited big swings, and the 10 year Treasury yield stayed near 4.36 percent, as reported by Reuters.
The ceasefire pause remains fragile and Iran has not reopened Hormuz, a standoff XAnalysts founder Mukesh Sahdev described as both political and logistical, as reported by Reuters.
Investors will watch the upcoming ISM services report for signs that higher energy costs are filtering through to the wider economy, and many are keeping cautious positioning.
