Overview
- Brent crude climbed above $100 per barrel, a move investors priced as a sign of prolonged higher energy costs that kept fuel and gas prices elevated.
- The DAX fell about 1.66 percent to roughly 25,576 on Wednesday and began Thursday trading near that level as markets absorbed the oil shock and awaited ECB guidance.
- The US military’s recent strikes on Iranian-linked oil tankers in or near the Strait of Hormuz pushed the perceived risk to seaborne supplies higher and lifted the energy risk premium.
- Markets widely expect the ECB to raise its policy rate to about 2.50 percent, and traders say the central bank’s forward guidance on future hikes will determine near-term equity moves.
- Sector moves diverged with utility RWE gaining on reported power-purchase activity, defence suppliers drawing attention, and consumer stocks under pressure as higher fuel costs squeeze households.