Oil took a big hit on Friday as Saudi officials advised that supply would rise in the second half of the year and Russia looking to return to production levels previously agreed in 2016. The equity markets also moved lower as energy stocks came under pressure in lighter pre-long weekend trading conditions, however we’ve seen a bit of a recovery in the futures this morning on news that the US-North Korean summit is back on. The dollar remained bid with the Dxy holding north of 94.20 despite the 10yr US Treasury yield dropping down 5bps to 2.93, the dollar move aided by further pressure on the Euro as Italy fails to form a coalition government.
It’s a big week ahead for financial markets culminating in the US jobs data on Friday but will probably have a relatively muted start today with both the UK and US markets closed for bank holidays. The main focus will start off on Oil and associated Petro products and currencies, but investors will be maintaining their now usual close watch on the news wires for updates on the various current Geo-Political themes with situations seeming to change on an almost daily basis at the moment.