Oil Market Rally Continues Amid Supply Deficit
Global crude oil benchmarks extended gains Thursday, driven by tighter supply and improved global demand signals. Brent crude climbed to $68.76 a barrel, while WTI crude settled at $66.71.
The latest EIA data showed U.S. crude inventories fell by nearly 3.9 million barrels, exceeding expectations and supporting a bullish outlook for the energy market.
Market optimism was also fueled by a recovery in global industrial output and an uptick in travel-related consumption across North America and Asia.
Trump’s Fed Comments Rattle Investors Briefly
Markets briefly dipped following remarks by former U.S. President Donald Trump, who disclosed that he had once considered firing Federal Reserve Chair Jerome Powell. Although he confirmed no action was taken, the comment stirred fresh debate on central bank independence.
Despite the initial volatility, U.S. equities recovered quickly:
- Nasdaq closed at fresh highs, driven by tech momentum
- S&P 500 ended the session modestly higher
- Dow Jones Industrial Average saw minor gains
Analysts say the markets largely shrugged off political noise, focusing instead on strong earnings and economic data.
Chipmaker TSMC Lifts Global Tech Sentiment
Taiwan Semiconductor Manufacturing Co. (TSMC) reported robust Q2 earnings, beating market expectations on the back of rising chip demand for AI, smartphones, and data centers.
TSMC also increased its full-year capex outlook, pointing to sustained demand growth. The announcement triggered a positive chain reaction:
- Nvidia, Intel, and AMD saw upward movement
- ASML, however, posted a subdued forecast citing supply bottlenecks
The tech rally played a key role in keeping global indices in the green.
Asia-Pacific Markets Show Divergence
Stock markets across Asia posted mixed performances:
- Nikkei 225 gained 0.6% on tech and export optimism
- ASX 200 rose 0.9%, supported by gains in mining stocks
- Kospi edged up 0.2% amid investor caution
- Thailand’s SET Index surprised with a sharp 2.9% increase
- Shanghai Composite remained flat due to weak domestic cues
Regional investors are balancing global tailwinds against local challenges, especially in China’s property sector and South Korea’s exports.
Indian Equities Cool Off Following Global Trends
Indian stock markets ended in the red on Thursday, with the Sensex slipping over 100 points and the Nifty 50 closing below 25,200. The decline was influenced by weak global cues and mixed domestic earnings.
Market participants are now looking ahead to the RBI’s monetary policy stance, which could shape short-term market sentiment. Some fund managers are calling for caution until the inflation outlook becomes clearer.
Meanwhile, foreign institutional investment remained flat, reflecting investor hesitancy amid global uncertainty.
Dollar Volatility and Central Bank Watch
The U.S. Dollar Index fluctuated following Powell-related headlines but regained strength later in the day. In Europe and Asia, central banks are expected to stay cautious, maintaining a “wait and watch” stance as inflation continues to moderate.
A new Bank of America survey showed cash levels among fund managers are at their lowest in over a decade hinting at increased exposure to equities but also heightened market risk.
Upcoming Catalysts: Data and Earnings in Focus
Traders are now eyeing key events that could set the tone for the coming weeks:
- U.S. retail sales figures and initial jobless claims
- Earnings from corporate giants like Tesla, Netflix, and leading banks
- Updates on inflation trends from major economies
Any surprises in the above could reprice expectations around interest rates and market valuations, especially in rate-sensitive sectors.
Final Take: Resilient but Cautious Market Behavior
Markets are showing underlying strength, led by technology and energy. However, political noise, policy direction, and macroeconomic indicators will remain critical drivers going forward.