The markets opened up more than 100 points in the first hour of trading as investors seem content to wait out the markets this week ahead of the Federal Reserve's September FOMC meeting, where the central bank will decide whether it will hike interest rates for the first time since 2006.
At the time of this writing on Friday, both oil contracts look poised to finish the week lower. Brent is set to close lower for the second straight week, while WTI is about to snap a two-week winning streak. Despite this week’s losses, both contracts remain above their August lows, keeping bullish hopes alive that prices may have bottomed, even if the probability of such scenario appears to have diminished given the lack of further follow-up buying after that late August rally.
Looking at the U.S. dollar side of the equation, upward pressure on the world’s reserve currency has been easing lately as traders have discounted the possibility of tighter interest rates in the United States this month.
China has announced tougher rules on trading stock index futures and foreign exchange derivatives as it seeks to steady jittery markets whose weakness has raised concern over the health of the world's second-largest economy.
The global stock market rout of the past week was sparked by concerns over a possible interest rate rise by the U.S. Federal Reserve and not by the devaluation of China's yuan currency, a senior Chinese central bank official told Reuters on Thursday.