Oil Prices Spike on Middle East Tensions:

Brent crude oil jumped above $90 a barrel for the first time since last October, fuelled by worries that the ongoing conflict in the Middle East could escalate further. Iran, a major global oil producer, has threatened retaliation for recent attacks, raising concerns about potential disruptions to global crude supplies.

Gold Rally Takes a Breather:

The gold market saw its climb pause after hitting new highs earlier in the week. Despite strong interest from central banks and Chinese buyers, gold prices stalled. Silver also faced resistance, indicating a potential shift in the precious metals market.

European Stocks Struggle Despite Rate Cut Hints:

European stock markets are on track for a second week of losses. This comes despite hints from the European Central Bank (ECB) about a possible rate cut in June. The rise in bond yields, which reflect market expectations for future interest rates, is putting downward pressure on equity valuations, especially for companies sensitive to borrowing costs.

Bright Spot in Europe:

UK GDP Shows Signs of Life: The UK’s FTSE 100 index received a boost on Friday after news that the economy grew for the second month in a row. This has ignited hopes that the nation might be emerging from recession.

Bitcoin Nears Record Highs Amidst Inflation and Halving Event:

Bitcoin prices are hovering near record highs, seemingly unfazed by recent outflows from a major investment vehicle (GBTC). Some experts believe these outflows could put downward pressure on Bitcoin, while others view them as a normal response to GBTC’s higher fees.

The hotter-than-expected inflation data from the US has positioned Bitcoin as a potential hedge against rising prices, attracting investors seeking to protect their purchasing power. Additionally, the upcoming halving event, which will significantly reduce the rate at which new Bitcoin is created, is also seen as a bullish factor for the cryptocurrency.