Energy Prices Continue to Soar as Inventories Shrink
Global crude oil markets remained on an upward trajectory on Thursday. Brent crude hovered around $68.76, while WTI crude reached $66.71, buoyed by a significant decline in U.S. stockpiles.
According to the EIA, U.S. oil inventories fell by 3.9 million barrels, fueling expectations of tightening supply. Combined with rising global demand particularly in transport, manufacturing, and shipping energy prices are expected to remain firm in the near term.
Market analysts also credit geopolitical stability and resilient consumption in Asia and North America for the sustained uptrend.
Powell in the Spotlight After Trump’s Remarks
Markets briefly reacted to political commentary as Donald Trump revealed he had previously considered replacing Federal Reserve Chair Jerome Powell. Though he took no action, the comment sparked renewed discussions around the Fed’s independence.
Despite initial turbulence, U.S. indices rebounded:
- Nasdaq closed near all-time highs
- S&P 500 posted modest gains
- Dow Jones recovered from earlier losses
Traders appear to be focusing more on macroeconomic data and earnings rather than political noise.
Tech Sector Momentum Builds on Strong TSMC Earnings
TSMC beat second-quarter estimates, citing sustained demand for AI chips, automotive semiconductors, and data center hardware. The company also raised its capital spending guidance, signaling strong confidence in upcoming quarters.
The tech rally was widespread:
- Nvidia, Intel, and AMD advanced on the news
- ASML, however, showed weaker performance due to logistical delays
This boost in the semiconductor space lifted global tech stocks and helped cushion markets from other uncertainties.
Mixed Signals Across Asian Markets
Asian stock performance varied by region on Thursday:
- Japan’s Nikkei 225 rose 0.6% as investors bought into exporters and tech
- Australia’s ASX 200 climbed 0.9%, led by mining and resources
- South Korea’s Kospi edged up slightly, up 0.2%
- Thailand’s SET Index jumped by an unexpected 2.9%
- China’s Shanghai Composite stayed flat due to local economic headwinds
The region continues to wrestle with mixed economic signals and divergent monetary policies.
Indian Equities Edge Lower Amid Uncertainty
The Indian stock market saw a slight pullback, with the Sensex closing over 100 points lower and the Nifty ending just below 25,200.
Several factors contributed to the decline:
- Nervousness around global market sentiment
- Disappointment in corporate earnings from key sectors
- Anticipation of the Reserve Bank of India’s next policy move
Domestic investors are expected to remain cautious until inflation and interest rate outlooks become clearer.
Currency Trends and Central Bank Strategies
The U.S. Dollar Index fluctuated on Thursday, initially falling on Powell-related headlines but later recovering as market clarity returned. Central banks in Europe, Japan, and India are expected to hold steady on interest rates while monitoring inflation trajectories.
A notable development: a Bank of America survey found that institutional cash levels dropped to 3.9%, the lowest since 2013. This signals a stronger risk-on attitude, though it also raises concerns about overexposure to equities.
What’s Ahead: Earnings and Economic Data to Watch
The market’s next moves may be driven by:
- Key U.S. data such as retail sales and jobless claims
- Q2 earnings results from Tesla, Netflix, and major banks
- Central bank statements and inflation trends globally
Traders are advised to stay agile as market sentiment could pivot quickly based on these upcoming announcements.
Conclusion: Optimism with a Dose of Caution
While markets are enjoying support from strong tech earnings and stable oil prices, uncertainties remain. Political comments, inflation data, and central bank decisions will play a defining role in shaping investor behavior in the weeks ahead.
As volatility lingers, balanced portfolios and a close watch on earnings reports may be key to navigating the second half of the year.
