Oil Prices Expected To Remain Key Driver Across Markets

Oil price moves are expected to remain a major factor influencing stocks, currencies, and fixed-income markets as the new quarter begins, Abu Dhabi First Bank analyst Simon Ballard said in a report. According to Jin10, Ballard said market sentiment has been supported by expected progress in U.S.-Iran peace talks and a recovery in shipping volumes through the Strait of Hormuz, but remains highly sensitive to how these developments evolve. He noted that the recent decline in oil prices has eased global inflation pressures and helped lift European and some Asian equities. However, Ballard said Abu Dhabi First Bank expects central banks to remain inclined toward raising interest rates, while Gulf Arab markets may face reduced crude oil revenues. He added that this is not a time for complacency.