European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
Dollar Falls as Oil Eases, Yen Jumps on Intervention Signals 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
ECB May Stop Rate Hikes After December, Capital Economics Says 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
U.S. Treasury Yields Surge as 30-Year Hits 22-Year High 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Japanese Yen Rebounds as Trump Flags Currency Weakness 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Germany’s 2026 Growth Outlook Strengthens on Fiscal Spending 
US Comfortable With Canada Trade Standoff as Import Bans Loom 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
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Oil Prices Dip on Rising U.S. Inventories and Middle East Tensions
Oil prices declined during Asian trading on Wednesday following an unexpected increase in U.S. oil inventories. Meanwhile, global attention remained on U.S. diplomatic efforts to ease rising tensions in the Middle East.
U.S. Inventory Build Exceeds Expectations
According to data from the American Petroleum Institute (API), U.S. oil inventories increased by 1.643 million barrels last week, surpassing the forecasted 0.7 million barrel build. This sparked concerns that U.S. fuel demand may be softening, potentially signaling a similar outcome in official data set to be released later on Wednesday.
Diplomatic Efforts in the Middle East
Despite a brief rise in crude prices after Israel claimed responsibility for the death of Hezbollah's Hashem Safieddine, prices soon fell as U.S. Secretary of State Antony Blinken continued diplomatic talks in Israel. These discussions aim to de-escalate conflict in the region, while also pushing for increased humanitarian aid to Gaza.
China’s Economic Signals and Dollar Strength
Market participants are also closely monitoring China, the world’s largest oil importer, amid ongoing concerns about reduced demand. Further pressure on oil prices came from a strong U.S. dollar, driven by expectations of smaller interest rate cuts by the Federal Reserve, pushing the currency to its highest level since August.
Goldman Sachs Oil Price Forecast
Goldman Sachs expects oil prices to average $76 per barrel by 2025, citing moderate surpluses and spare production capacity among major oil producers. The bank noted that Middle East tensions have not significantly affected oil supplies and that OPEC+ plans to increase output later this year.
