By Mike Dolan
Sept 23 (Reuters) – It was all about oil again over the past 24 hours, with prices swooning as the speechifying and backroom meetings at the United Nations’ annual gathering unfolded.
Brent crude stayed below $100 per barrel early on Wednesday after dipping below that level yesterday, amid fresh optimism about a diplomatic push in New York to end the Iran conflict.
US and Iranian officials met with Qatari mediators behind the scenes at the UN on Tuesday, adding to the optimism from yesterday’s reports that Tehran was prepared to reopen the Strait of Hormuz within seven days if the US lifted its shipping and economic blockades.
With Iranian President Masoud Pezeshkian due to speak at the General Assembly on Wednesday, there was still some hope of a meeting between him and President Trump.
For his part, Trump again threatened to annihilate the Iranian government over its nuclear ambitions and chokehold on energy waterways, but said he was always open to talks.
Trump also emphasized, again, that he was not bound by the outcome of the US midterm elections, even as polls show his worst-ever approval rating and as betting markets now lean to a Democrat clean sweep of both houses of Congress.
Oil was further subdued by news that Saudi Arabia was about to reopen its East-West Pipeline on Tuesday, something markets had assumed would take several more weeks.
Elsewhere, renewed AI optimism kept chip stocks buoyed, with the SOX semiconductor index adding another 2% on Tuesday. Tech investor SoftBank was also in focus as its $10 billion bond sale drew big demand and was on course to be the biggest junk bond deal ever.
Global stocks and US futures were mostly flat first thing on Wednesday, however, with tomorrow’s US-China summit now in the frame too.
Interest rate markets were calmer, even though bond yields nudged higher as more Fed officials underlined their impatience in getting inflation back to target.
The day’s big economic releases include early September business surveys from around the world.
Chart of the day
President Donald Trump’s public approval rating has fallen to 32% – the lowest of his political career and lower than equivalent ratings for his predecessor Joe Biden – as Republicans are increasingly souring on his handling of the cost of living amid the Iran war, according to a recent Reuters/Ipsos poll.
The poll, conducted last week, showed that approval ratings for Trump’s handling of the economy have plunged to as low as 23%, with just 17% approving Trump’s record on the cost of living. For the first time, Republicans who disapprove of Trump’s handling of the cost of living outnumber those who give him a thumbs up: 51% to 44%.
Today’s events to watch
• US S&P Global flash PMIs for September (9:45 a.m. EDT)
• US 5-year note auction (1 p.m. EDT)
• Fed’s Michael Barr speaks
• Japanese financial markets closed for holiday, returning tomorrow
Before you go, check out my latest column on what’s tempting some investors back to bonds after a six-year bear market.
And listen to the latest episode of the Morning Bid daily podcast, where we discuss the latest out of the UN General Assembly, and more.
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