Daily Summary: Oil at Five-Month Highs, Indices Under Pressure (23.10.2026)
Oil Market Overview
On October 23, 2026, crude oil prices surged sharply, with Brent crude nearing $112 per barrel, marking its highest level since May. This increase was primarily driven by escalating tensions in the Middle East, particularly due to missile and drone strikes by Iran-backed Houthi rebels targeting Saudi Arabian oil infrastructure. As a result, Saudi Aramco ordered evacuations at its Dhahran headquarters, reflecting heightened security concerns.
Despite the return of oil flows through the Strait of Hormuz to near pre-war levels, geopolitical risks remain significant, with Brent crude prices having risen over 85% since the onset of the US-Iran conflict.
Equity Market Performance
In the equity markets, Wall Street experienced a mixed session. The S&P 500 fell by 0.4%, and the Dow Jones dropped over 1%, primarily due to pressures in the financial sector. Conversely, the Nasdaq 100 saw a slight gain of 0.2%, as selling pressure on technology stocks eased somewhat. However, the semiconductor index faced a decline of over 5% for the week, indicating ongoing struggles in the tech sector.
European markets closed lower, with the DAX and CAC 40 indices suffering from disappointing earnings reports from luxury goods and automotive companies. Notably, Kering's shares plummeted by more than 16% following poor sales data, while Volvo Cars reported a significant net loss, leading to a 25% drop in its stock price.
Precious Metals and Macroeconomic Data
Gold prices fell below $4,000 per ounce, marking a weekly decline of approximately 4%. This decline is attributed to rising oil prices and inflation expectations, which have led to speculation about further Federal Reserve rate hikes. Interestingly, gold-backed ETFs have seen consistent inflows, indicating a divergence between price action and long-term demand.
Macroeconomic data from Europe showed disappointing PMI figures, particularly in France, where the composite index fell to 48.4. In contrast, the UK PMI reading remained resilient at 53.1. In the US, GDP growth is projected around 4%, with manufacturing showing signs of expansion, although consumer sentiment has dipped to a five-month low due to high living costs.
Debt Market and Foreign Exchange
In the debt markets, US Treasury yields remained near the psychological 5% level, while European yields rose. Corporate credit spreads widened significantly, reflecting investor concerns over the funding requirements for AI projects, particularly following Meta Platforms' announcement of substantial infrastructure expenditures.
The Polish złoty faced pressure due to rising oil prices, while the EUR/USD pair dipped below 1.12, influenced by weak French manufacturing data and strong US economic performance.
Cryptocurrency Market
In the cryptocurrency space, major digital assets remained stable, with Bitcoin trading near $81,400. Regulatory scrutiny continues, particularly regarding Tether's financial dealings, which has drawn attention to the need for transparency in the digital asset sector.