investingLive European markets wrap: Tentative mood with eyes on Middle East, FOMC meeting

Headlines:Oil price surge sees momentum being tested, are markets too complacent?Iraq-Turkey Pipeline (ITP) to resume at a rate of 250,000 barrels to start withEquities continue to put up a strong front this week, at least for nowFed preview: the central bank will avoid scaring markets and keep the status quoBoC preview: interest rates to remain unchanged; cautious approach amid US-Iran warBoJ preview: no changes expected amid lack of inflation progress and geopolitical riskEurozone February final CPI +1.9% vs +1.9% y/y prelimMarkets:WTI crude oil down 0.7% to $95.30USD and major FX little changedEuropean indices sit higher but early gains reduced, S&P 500 futures up 0.3%US 10-year yields down 1.3 bps to 4.19%Gold drops down 1.1% to $4,950Bitcoin down 2.0% to $73,036It was a more tentative session as markets continue to wait on further developments from the Middle East.The Strait of Hormuz remains shut for business and the only positive news for energy markets was that we did see a major breakthrough with the reopening of the Iraq-Turkey Pipeline (ITP). That being said, it is a mere drop in the bucket of water in terms of compensating for the loss of oil exports from the Hormuz blockade. But at least for now, Iraq has a tiny outlet to make up for loss of over 3 million barrels per day in exports. The opening level for the pipeline is 250,000 barrels per day for now.Oil prices were not too volatile, with lesser headlines involving Iran attacks as well. However, traders remain guarded overall still. WTI crude oil is down 0.7% to $95.30 but off early lows of $91.45 seen in Asia trading at least.In other markets, stocks continue to stay in search of a brighter outlook this week. European indices are sitting higher but have reduced gains during the session, the same for US futures. The DAX is up 0.5% currently but was up around 0.9% earlier in the day. Meanwhile, S&P 500 futures were up as much as 0.6% but have halved gains to 0.3% now.While the main focus stays on the Middle East, just be reminded that there is also the FOMC meeting to come later today.With that, major currencies also remain guarded with light changes all around. The dollar is looking rather tepid and lacking direction during the session. EUR/USD is flat at 1.1537 with USD/JPY also flat now at 159.05 after a brief trip lower to 158.65 earlier in the day.Elsewhere, precious metals are looking softer with gold down 1.1% to $4,950 and silver down 0.8% to $78.63 on the day. In the bond market, 10-year Treasury yields continue to retreat on the week with yields down 1.3 bps to 4.19% at the moment.
This article was written by Justin Low at investinglive.com.

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