Crude Oil prices trade near $100 per barrel. Australian Dollar reaches three-month high

By JustMarkets 

The US stock markets posted solid gains on Tuesday, driven by a rebound in both cyclical and defensive sectors. By the close, the Dow Jones (US30) advanced 1.02%, while the S&P 500 (US500) gained 0.28%. The tech-heavy NASDAQ (US100) ended the day slightly lower, down 0.13%. A notable decline in long-term US Treasury yields, along with a modest pullback in energy prices, reinforced market expectations that the Federal Reserve will refrain from further automatic monetary tightening at its October 27-28 meeting. General Motors shares plunged 6.8% after the company narrowed its full-year operating profit guidance to $14.5-15.5 billion and issued cautious fourth-quarter sales expectations, despite announcing a new $20 billion share buyback program. Investors remain focused on the earnings season, awaiting results from major technology and media companies, including Netflix.

In Europe, Germany’s DAX (DE40) slipped 0.06%, France’s CAC 40 (FR40) declined 0.38%, Spain’s IBEX 35 (ES35) rose 0.28%, and the UK’s FTSE 100 (UK100) closed 0.29% lower on Tuesday. European Equity Indices managed to recover from intraday lows but ultimately ended the session in negative territory. Weakness in the technology and industrial sectors offset gains in defensive stocks.

Crude oil prices retreated to around $98 per barrel on Tuesday, interrupting a multi-week rally amid hopes of diplomatic de-escalation between Washington and Tehran. The easing of the geopolitical risk premium was driven by a visit from Pakistan’s army chief to Tehran for talks with Iran’s senior military and diplomatic leadership. Islamabad, acting as a key intermediary, is seeking to facilitate dialogue and reduce tensions. Additional pressure on oil prices came from previously reported comments by US President Donald Trump indicating that there were no plans for direct military strikes against Iran ahead of the midterm elections.
US natural gas prices edged higher on Wednesday to $2.97 per million British thermal units (MMBtu). Prices attempted to rebound from four-week lows, supported by stronger LNG export activity and a moderate decline in production levels, which partially offset pressure from weak current demand.

In Asia, Japan’s Nikkei 225 (JP225) fell 1.30%, China’s FTSE China 50 declined 0.63%, Hong Kong’s Hang Seng (HK50) dropped 1.32%, and Australia’s ASX 200 (AU200) closed 0.33% lower on Tuesday.

The Australian dollar’s rise above the psychologically important $0.70 level to a three-month high reflects a sharp reassessment of the Reserve Bank of Australia’s policy outlook by financial markets. Hawkish remarks from Deputy Governor Andrew Hauser, who stated that the inflation outlook had “deteriorated significantly” and was worse than previously anticipated, provided strong support for the currency. The renewed inflationary pressure stems not only from persistent strength in services prices but also from an external inflation shock. Rising energy costs linked to escalating tensions in the Middle East have pushed Brent crude prices toward $108 per barrel, approximately 30% above the central bank’s baseline assumptions from August.

S&P 500 (US500) 7,712.57 +21.84 (+0.28%)

Dow Jones (US30) 52,495.88 +529.85 (+1.02%)

DAX (DE40) 25,304.42 -15.35 (-0.06%)

FTSE 100 (UK100) 10,733 -31.69 (-0.29%)

USD Index 101.71 -0.27 (-0.26%)

News feed for: 2026.10.21

• Japan Trade Balance (q/q) at 02:50 (GMT+3) – JPY (MED)
• UK Consumer Price Index (m/m) at 09:00 (GMT+3) – GBP (HIGH)
• UK Producer Price Index (m/m) at 09:00 (GMT+3) – GBP (MED)
• UK BOE Gov Bailey Speaks at 16:00 (GMT+3) – GBP (LOW)
• US Crude Oil Reserves (w/w) at 17:30 (GMT+3) – WTI (HIGH)

By JustMarkets

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.