Geopolitical Shocks That Could Reshape Financial Markets in 2025 
Stock Futures Dip as Investors Await Key Payrolls Data 
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data 
Fed May Resume Rate Hikes: BofA Analysts Outline Key Scenarios 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Global Markets React to Strong U.S. Jobs Data and Rising Yields 
Energy Sector Outlook 2025: AI's Role and Market Dynamics 
U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures 
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift? 
2025 Market Outlook: Key January Events to Watch 
UBS Projects Mixed Market Outlook for 2025 Amid Trump Policy Uncertainty 
China's Refining Industry Faces Major Shakeup Amid Challenges 
Moldova Criticizes Russia Amid Transdniestria Energy Crisis 
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure 
European Stocks Rally on Chinese Growth and Mining Merger Speculation 
China’s Growth Faces Structural Challenges Amid Doubts Over Data 
Gold Prices Slide as Rate Cut Prospects Diminish; Copper Gains on China Stimulus Hopes 
WTI and Brent prices has diverged recently, with WTI extending losses of -1.45% from last 3 days (currently trading at $55.30 level), while Brent surged 2.01% so far in this week. WTI’s slumps came after reports show US diesel and gasoline stockpiles increased on the week.
Distillate supplies rose 2.6mil bbl in the week past, against expectations of a -0.3mil bbl reduction in a Bloomberg poll.
The spread between WTI and Dubai oil prices have shrunk to about $1/bbl, the tightest since April 2018. It is likely that any correction may have to come from WTI as high prices dampen demand for US crude exports.
Updates on crude oil derivatives trades: In crude oil segment, we initiated a risk reversal strategy by going long in Brent Dec’19 10D call versus short Dec’19 10D put. They also went tactically short Brent-Dubai Q3’19 swap spread due to mounting risks from Iran sanctions.
Hence, contemplating above developments, crude oil derivatives trades are advocated on hedging grounds: WTI crude directional hedge is advised, by maintaining shorts in CME WTI futures for August delivery for arresting downside risks in short-run, simultaneously, longs in CME WTI futures of September’2019 month deliveries.
