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Rising oil prices “could be uncomfortable for central banks” – OptionsDesk

–News Direct–

OptionsDesk broker Richard Perry speaks to Thomas Warner from Proactive following a fascinating week in the markets, in which the FTSE 100 rose sharply to outpace other major indexes.

The UK's blue-chip index experienced a significant surge, reaching a four-month high at of more than 7,700 despite stronger than expected US CPI numbers that indicate potential prolonged high interest rates.

Additionally, an upgrade in iron ore prices by JP Morgan led to a rally in mining stock prices, further boosting the FTSE. Perry suggests that call spreads could have been a profitable trade strategy. The spotlight also fell on oil, with Brent reaching $94-$95 a barrel, up from $72 as recently as July. Increasing energy prices may lead to yet more inflationary pressures, potentially challenging central banks' current policy strategies. "We also witnessed WTI reaching $90/bl and this could be uncomfortable for central banks… we'll need to see how this inflationary pressure is going to push through to the consumer."

Contact Details

Proactive UK Ltd

+44 20 7989 0813

uk@proactiveinvestors.com

View source version on newsdirect.com: https://newsdirect.com/news/rising-oil-prices-could-be-uncomfortable-for-central-banks-optionsdesk-161132264

Options Desk

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COMTEX_440442301/2655/2023-09-18T09:15:52

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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Miami Times Now  journalist was involved in the writing and production of this article.