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Oil jumps on new sanctions, gold continues to slide

Oil prices surged on Thursday after the US announced tighter sanctions on Russian crude suppliers, prompting Indian buyers to reconsider imports. Gold continued its pullback from recent record highs, as technical selling took hold following a prolonged rally. Major US and European stock indices closed lower on Wednesday as renewed US-China trade tensions and disappointing corporate earnings from companies pressured sentiment. In Asia, equities broadly traded weaker on Thursday, led by declines in South Korea and Japan, following additional caution after the Bank of Korea held rates steady. 

  • Date
  • Author Shane Strowmatt, Senior Investment Writer
  • Reading time 5 minutes

Oil
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Oil prices increased by roughly 3.5% on Thursday after Indian buyers began reassessing purchases of Russian crude due to fresh US sanctions imposed on Russian majors Rosneft and Lukoil over the Ukraine conflict. Brent crude was trading near USD 64.70 and West Texas Intermediate (WTI) at about USD 60.60 per barrel. Indian state refiners and Reliance Industries, India’s largest importer of Russian oil, also indicated plans to reduce or sharply cut imports from Russia to comply with new government guidance. Further supply dynamics are expected to be influenced by factors such as OPEC+ unwinding production cuts and ongoing geopolitical tensions.

Gold price extends losses after sharp drop

Gold prices continued to fall on Wednesday, trading around USD 4090 per ounce and down from a high near USD 4380 at the start of the week. The retreat comes after a powerful rally had propelled gold to successive record highs since August, fuelled by expectations of US rate cuts, increased central bank buying, and investor moves away from sovereign debt and currencies due to budget concerns. The latest losses are primarily due to technical selling, with gold considered overbought since early September. Despite the pullback, gold remains up more than 50% year-to-date. Meanwhile, Bitcoin was stable around USD 108,800 after a recent pull-back, while US Treasury yields ticked slightly higher, with the 2-year yield near 3.5% and the 10-year yield trading around 4%.

Kospi reverses gains after central bank decision

South Korea's Kospi index retreated by 1.1% on Thursday, erasing earlier record highs after the Bank of Korea kept its benchmark interest rate steady at 2.5% as expected. The Korean won also weakened to its lowest level since May, falling 0.2% against the US dollar. Broader Asia-Pacific markets mostly declined as investors reacted to new concerns over potential US restrictions on exports to China. Japan’s Nikkei 225 was trading 1.5% lower, leading regional losses, and the S&P/ASX 200 was essentially flat. Hong Kong’s Hang Seng Index was down 0.4% and mainland China’s CSI 300 lost 0.8%.

US stocks fall on trade tensions

Major US equity indices ended lower on Wednesday as concerns re-emerged that the trade dispute between the US and China could intensify, dampening earlier hopes of relaxation. The Dow Jones Industrial closed down 0.7% at 46,590.41 points, the S&P 500 declined 0.5% to 6699.40, and the tech-heavy Nasdaq 100 fell 1% to 24,879.01. Netflix shares dropped 10% to a five-month low after the video streaming giant reported unexpectedly weak third-quarter earnings per share. Tesla stock fell 3.5% after the bell. The electric vehicle maker posted a 12% revenue increase to USD 28.1 billion in the third quarter, its first growth after two quarters of declines, although net income dropped 37% to USD 1.37 billion due to lower electric vehicle prices and a surge in operating expenses, particularly for artificial intelligence and research projects.

Roche raises profit guidance after robust sales

Swiss drugmaker Roche revised its full-year profit outlook higher on Thursday, forecasting core earnings per share to rise in the high single- to low double-digit range after reporting 7% constant exchange rate sales growth for the first nine months of 2025 to CHF 45.9 billion. Pharmaceuticals sales increased 9%, which offset declines from medicines that lost exclusivity. Roche also announced a USD 3.5 billion acquisition agreement for 89bio and plans to expand manufacturing in North America, reinforcing its strategic focus on pipeline development and global growth. On Wednesday, the Swiss Market Index decreased 0.1%, while the Euro Stoxx 50 slipped 0.8%, Germany’s DAX declined 0.7%, and France’s CAC 40 was down 0.6%.

UK inflation steady in September 2025

Annual consumer price inflation in the UK remained stable in September 2025, with the Consumer Prices Index (CPI) up 3.8%, unchanged from August. Prices were flat when compared with the previous month. Despite some easing in food and housing costs inflation over the month, the UK’s CPI rate remained higher than those for Germany, France and the wider EU according to data released by the Office for National Statistics on Wednesday.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Freeport McMoran, Honeywell, Intel, Kuehne + Nagel, MTU Aero Engines, Nokia, STMicroelectronics, T-Mobile US, and Union Pacific. Annual general meeting at BHP.

Economic data in focus: US weekly initial jobless claims (14:30), Canadian retail sales (14:30), US existing home sales (16:00), and euro-area consumer confidence (16:00).

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