International markets opened Monday with competing pressures. This included falling oil, offering some initial relief from energy costs, while French political unrest intensified concerns about sovereign borrowing. Equity futures in the United States recovered, but European assets faced a more difficult session. It suggests that investors are distinguishing between a modest improvement in the global inflation backdrop and risk concentrated in individual economies, including France.
Oil Remains Central to That Balance
Brent futures have recovered quite a bit but remain within the previous range. West Texas Intermediate was down slightly at the open as well, but has since bounced. The Brent market finished Friday’s session at the highest level since May 19. Monday’s decline represents more or less a retreat from elevated prices rather than evidence that energy pressures are disappearing.
Russian Sanctions
Russian sanctions policy has added some uncertainty, as President Donald Trump signed an order waiving some sanctions and tariffs relating to Russian exports. Asian market reports also noted his subsequent statement that a final decision had not been made. This qualification will ma...