Market wrap: Crude oil price continues to climb, dragging petrol with it

Presuming that crude oil prices continue to climb; it won't be long before petrol prices rise again.

Presuming that crude oil prices continue to climb; it won't be long before petrol prices rise again.

US stock markets eased this week into the Jackson Hole Symposium for central bankers, where Fed Speakers are expected to remain hawkish.

The ASX200 also eased ahead of Jackson Hole and, as traders digested a busy week of earnings reports from corporate Australia as it negotiates the headwinds of higher costs and higher interest rates.

Here are the top five things that happened in markets this week:

1. Australian reporting season takes turn for the better

Over 100 ASX companies reported this week, and in contrast to the first few weeks of reporting seasons, results took a turn for the better. After reporting results, the market quickly rewarded the likes of Domino’s Pizza, WiseTech, Worley and Sonic Healthcare.

2. Crude oil set to drag petrol prices higher

After falling to a six-month low last week near US$85 per barrel crude oil rebounded back above $95 per barrel after Saudi Arabia warned it could cut production should a nuclear deal with Iran lead to the return of Iranian oil.

Presuming that crude oil prices continue to climb; it won’t be long before petrol prices rise again.

3. EURUSD below parity for first time in 20 years

The EURUSD closed below parity on Monday for the first time in twenty years. While the narrative of an energy crisis in Europe, the war in Ukraine, slowing growth and high inflation is well known, it’s hard to see what sparks a sustained turnaround for the EURUSD barring a full dovish Fed Pivot.

4. Tesla three-for-one stock split

Tesla conducted a three-for-one stock split, which sees investors receive two additional shares for each one they already own. This will mean that a shareholder who owned 10 shares in Tesla before the split now owns 30.

The main aim of a stock split is to make the shares more affordable. Based on its last closing price of $891, the stock split will lower the price of each Tesla share to around $297.

5. The share price Zooms lower

Q2 US earnings season saw reports from companies including Peleton, ZOOM and chipmaker Nvidia.

After falling more than 80 per cent from its pandemic high of October 2020 of $565 to near $100 per share, the post-pandemic woes of Zoom have continued.

Its share price plunged another 16 per cent after reporting intense competition and forecasted revenue growth to slow to single digits.

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All trading carries risk. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.
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