(Bloomberg) --
Good morning. The rally in oil prices took a breather after Monday's historic jump, there's a big Brexit decision due from the U.K. Supreme Court, a debate on EU-U.S. tariffs is simmering and global currency trading is booming. Here's what's moving markets.
Oil Rally Pauses
After a historic Monday for oil that saw Brent crude futures end the day up about 15%, the advance paused on Tuesday as investors awaited clarity on how long it'll take Saudi Arabia to restore output that was cut in half by the attacks on its production facilities. State-owned operator Saudi Aramco is growing less optimistic over a rapid recovery, and could now face weeks or months before the majority of output is restored. Here is a list of countries that could offset the supply losses if disruption lasts longer than initially feared.
Brexit Goes Supreme
Judges will convene at the U.K. Supreme Court to decide whether the government's decision to suspend Parliament was lawful, a decision with huge constitutional stakes and potentially significant implications for the current political turmoil in the U.K. That's all in the shadow of now daily meetings between the U.K. and European Union negotiating teams as they work to find an agreement before the Oct. 31 deadline that Boris Johnson so badly wants to avoid extending. Perhaps an all-Ireland backstop could save Brexit?
‘Enough Tariffs'
The European Union is urging President Donald Trump to take it easy on tariffs, as a tit-for-tat battle between the trading bloc and the U.S. simmers. At the center of the debate is state aid afforded to plane-makers Airbus SE and the Boeing Co., and both sides have proposed lists of other sectors that could be targeted as leverage. “We have enough tariffs in the world as it is,” the EU's chief trade negotiator argued.
Futures Lower
Sectors from travel to industrials were roiled by the suddenly higher cost of oil on Monday, and index futures are pointing to a slightly lower open again today. The pound slipped ahead of that Brexit court hearing and the euro crept higher, and while we're on currencies, note that trading in the global foreign-exchange market has just jumped to the highest-ever level at $6.6 trillion. Meanwhile, here's why the dominant U.S. dollar refuses to go away.
Coming Up...
A selection of European Central Bank members will be speaking in both London and Luxembourg, Israel will hold its general election and we'll get the ZEW economic sentiment survey in Germany, plus industrial production numbers from the U.S. For earnings watchers, grocery delivery firm Ocado Group Plc, one of the hottest U.K. stocks in the past couple of years, reports.
What We've Been Reading
This is what's caught our eye over the past 24 hours.
- Crispin Odey's opened his best performing hedge fund to external investors.
- Wall Street's moving on from numbers to narrative economics.
- The billionaire everyone's talking about in Ukraine.
- How to get rich flipping sneakers.
- Farmers can increase returns by hiring better bees.
- WeWork sees IPO completed by end of the year.
- JPMorgan's metals desk was a criminal enterprise, U.S. says.
To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net
©2019 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
