Shell announces completion of evacuation from five platforms including Appomattox

⑴ The yield on the UK 10-year government bonds remained steady above 5.4%, near a 19-year high, as investors weighed declining oil prices against hawkish comments from Bank of England policymakers. ⑵ Brent crude retreated as concerns over Middle East supply eased after US President Trump ruled out the possibility of attacking Iran before the November midterm elections and described efforts to end the conflict as productive. ⑶ Meanwhile, Bank of England Chief Economist Huw Pill stated that the central bank must continue focusing on controlling inflation. Monetary Policy Committee member Megan Greene warned that UK wage growth could reach around 3.5% by 2027, potentially continuing to drive inflationary pressures and increasing the need for further rate hikes. ⑷ Governor Andrew Bailey also emphasized that the central bank must continue focusing on reducing inflation. ⑸ The market anticipates the Bank of England will raise rates in November, as it remains the only major central bank yet to begin tightening monetary policy to counter inflationary pressures arising from the US-Iran conflict.

JPMorgan has raised the target price of Chevron (CVX.US) from $222 to $241.

The Prime Minister of Malaysia stated that the central bank will provide an additional 5 billion ringgit in financing to small and medium-sized enterprises affected by the Middle East conflict.

⑴ Italy's 10-year government bond yield fell below 4.55%, retreating from a three-year high as falling oil prices eased the bond sell-off triggered by concerns surrounding Europe's fiscal outlook. ⑵ US President Trump stated that the United States will not attack Iran before next month's midterm elections, easing market concerns about further disruptions to energy supplies. ⑶ Italy's risk premium narrowed, with the yield spread over safe-haven German government bonds dropping to 107 basis points from 130 basis points last Friday. ⑷ The market has also reduced bets on European Central Bank rate hikes, now expecting the policy rate to be 3.2% by the end of 2027. ⑸ However, yields remain near multi-year highs, and Italy's debt-to-GDP ratio of 138.6% is expected to exceed that of Greece this year, making it the most indebted country in the Eurozone. ⑹ The European Commission's fiscal chief urged budget restraint, rejecting calls from Italy and Greece for greater budgetary flexibility. ⑺ Meanwhile, the Italian government is in talks with banks and energy groups about possible contributions as it prepares to submit the 2027 budget next week.