On the oil market, prices went up and down on Monday. By the evening, the price of Brent crude oil from the North Sea had recovered and rose by 1.3 percent to $96.20 per barrel. Support came from the booming US job market and the surprisingly strong increase in Chinese exports. At times, recession-related demand concerns had pushed the price down by around two percent to $93. In the previous week, the Brent price had even fallen by 13.7 percent, more than it had since the beginning of the corona pandemic in April 2020.
In the FX market, the dollar gave back some of the gains it had made the previous week on the back of the US jobs boom and rising bond yields. In return, the euro rose 0.3 percent to $1.0210. However, the common currency could not quite make up for the significant price losses after the publication of the robust labor market report in the USA on Friday. The US economy had surprisingly created many jobs in July, fueling speculation that the US Federal Reserve would raise interest rates again significantly and giving the dollar a boost. In addition, a member of the US Federal Reserve had provided indications of another sharp hike in interest rates. The Fed is far from finished on the path to containing inflation, said San Francisco Regional Federal Reserve Board Chair Mary Daly.
Trading on the European government bond market was characterized by a high level of nervousness. The yield on ten-year Italian government bonds rose above the three percent mark. On Friday, the rating agency Moody’s had set the outlook for Italy to “negative”. By contrast, the government securities of the other euro countries were in demand, with yields falling significantly in some cases.