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Evening digest: oil prices mixed, bank stocks slip after earnings

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Oil prices were mixed as hopes for increased Russian diesel supplies offset concerns over attacks on Middle East energy infrastructure.

Gold prices edged lower ahead of key US inflation data, while New York Fed President John Williams maintained that another rate hike could be appropriate this year but saw no need for further increases in 2027.

Meanwhile, major US banks reported third-quarter results, with mixed revenue performances and varying investor reactions.

Oil prices mixed as supply risks offset Russian diesel prospects

Oil prices moved in opposite directions on Tuesday as prospects for Russian diesel exports to global markets competed with concerns over supply disruptions in the Middle East.

Brent crude futures fell 0.74% to $105.87 per barrel, while US West Texas Intermediate crude rose 0.69% to $94.39.

WTI was on track to close at its highest level since September 24 for a second consecutive session.

The Kremlin said it saw no direct connection between a potential deal involving Russian diesel exports to the US and Moscow’s position on Ukraine peace negotiations.

US President Donald Trump said the diesel was intended for the rest of the world, rather than the US.

Meanwhile, attacks and escalating tensions involving Saudi Arabia and Yemen’s Iran-aligned Houthi militants heightened concerns over Gulf energy infrastructure and shipping routes.

Disruptions around the Strait of Hormuz remain significant because about 20% of global oil supplies passed through the waterway before the US and Israel attacked Iran in February.

Despite the disruptions, OPEC+ production increased sharply in September, driven by higher output from Saudi Arabia, according to OPEC.

The organisation lowered its forecast for 2026 oil demand growth for a sixth consecutive month but raised its outlook for 2027, citing the need to rebuild inventories depleted by the Iran war.

Gold prices ease ahead of US inflation data

Gold prices slipped as investors awaited US inflation figures and comments from Federal Reserve officials for clues about the central bank’s interest-rate outlook.

Spot gold fell 0.18% to $4,163.72 per ounce, while December US gold futures settled 0.04% lower at $4,188.50.

Investors were focused on Wednesday’s Consumer Price Index report and Thursday’s Producer Price Index figures, alongside remarks from Fed Chair Kevin Warsh.

StoneX senior market strategist Bob Haberkorn said investors were waiting to see how the inflation data would affect market expectations.

Higher interest rates can weigh on gold because the metal does not generate interest income.

However, Commerzbank analysts noted that rate increases can also intensify government debt-sustainability concerns by raising borrowing costs.

Other precious metals also declined. Spot silver fell 1.8% to $59.22 per ounce, platinum slipped 1.22% to $1,672.82, and palladium dropped 1.34% to $1,130.50.

Fed’s Williams sees no need for rate hike in 2027

New York Fed President John Williams said in a Bloomberg News interview that he continued to believe another rate increase could be appropriate this year but did not currently expect further hikes to be necessary in 2027.

Williams said inflation could slow considerably next year as the effects of tariffs and higher energy prices fade.

He also pointed to declining measures of underlying inflation and said the labour market was not showing signs of imbalance that would contribute to broader price pressures.

He supported the Fed’s September rate increase after the outlook for energy prices deteriorated, but maintained that underlying disinflationary forces remained in place.

Williams acknowledged uncertainty surrounding the outlook, particularly the inflationary effects of demand from artificial intelligence infrastructure investment.

He said policymakers would need to continue monitoring incoming economic data.

His comments came ahead of Wednesday’s inflation report, the last consumer inflation reading before the Fed’s October 27-28 meeting.

US banks report mixed third-quarter results

Major US banks reported higher profits, but results and share-price reactions varied.

JPMorgan Chase reported net income of $15.31 billion, or $5.57 per share, and revenue of $50.9 billion, both below analysts’ expectations.

Fixed-income markets revenue fell 4% to $5.4 billion, marking its first decline in more than two years.

Goldman Sachs delivered a stronger result, with earnings of $17.01 per share and revenue of $18.68 billion, exceeding FactSet estimates.

Net profit rose 29% year over year to $5.29 billion, while revenue increased 23%.

Wells Fargo earned $1.87 per share, above consensus, but revenue of $21.87 billion missed expectations. The bank retained its full-year net interest income outlook of $50 billion.

Citigroup reported revenue of $23.85 billion and net income of $5.25 billion, or $2.85 per share. Profit rose 40% from a year earlier, while revenue exceeded analyst estimates.

Despite the varied results, bank shares were mostly lower in afternoon trading.

The post Evening digest: oil prices mixed, bank stocks slip after earnings appeared first on Invezz

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