Veteran Commodity Trader: The U.S. stock market is like 'children rushing to the beach,' oblivious to 'the shark fin gliding in the distance.' The essence of AI computing power is akin to oil.

Jeff Currie, former head of commodities research at Goldman Sachs, warned that Wall Street is ignoring danger akin to the "children on the beach" in the movie Jaws: diesel inventories are nearing critical levels, spot markets are already signaling shortages, yet the U.S. stock market remains engrossed in the AI-driven rally. He emphasized that the essence of AI computing power still relies on "diesel and natural gas," and once an energy crisis erupts, oil prices, energy stocks, and the valuation framework of U.S. equities will all face forced recalibration.

wallstreetcn18:43

Energy & Utilities Roundup: Market Talk

WSJ16:20

Shanghai Shipping Exchange: Crude oil freight rates remain volatile at high levels.

According to the weekly report on China's foreign trade oil tanker transportation market released by the Shanghai Shipping Exchange on May 16th by Gelonghui, global commercial crude oil inventories may continue to decline in the coming months, thereby supporting international oil prices at high levels. Saudi Arabia stated that its crude oil production has dropped to the lowest level since 1990, compounded by geopolitical risks in the Middle East, further strengthening expectations of a tight supply in the oil market. This week, Brent crude oil futures prices rose, and freight rates for VLCC-type tankers in the global crude oil shipping market remained volatile at high levels, while freight rates for China’s VLCC import market fluctuated at elevated levels.

Gelonghui Finance12:51

The US dollar has risen for five consecutive sessions, approaching the 100 mark, while non-US currencies have collectively weakened. However, the movement of the Japanese yen appears somewhat unusual.

This week, the global foreign exchange market was dominated by a significant strengthening of the US dollar. The US Dollar Index rose by 1.44% on a weekly basis, closing positive for five consecutive trading days, breaking through the middle Bollinger Band at the 98.40 level. The MACD red histogram expanded, establishing a short-term strong trend. The British pound fell 2.35% against the US dollar on a weekly basis, while the euro dropped 1.38% against the US dollar. The US dollar rose 1.35% against the Japanese yen and 0.58% against the Canadian dollar. Overall, amid heightened volatility in risk assets, the US dollar's role as a primary safe-haven and high-interest-rate currency has been reinforced. US Dollar Index: This week's performance review shows that the index closed positively for five consecutive trading days.

FX678 Finance12:47

The global bond market sell-off has impacted risk assets, with U.S. Treasury yields surpassing 4.5% and technology stocks leading declines in the U.S. equity market.

Global bond markets faced a sharp sell-off this week, beginning to spill over into risk asset markets that had previously been rallying strongly.

Zhitong Finance09:29

Global inflation intensifies the bond market storm, shaking the foundation of the stock market bull run; 'Everything now depends on oil.'

The global inflation fears triggered by the Hormuz stalemate have forced markets to bet on Fed rate hikes, with long-term bond yields in the US, Japan, and the UK surging to multi-year highs. Meanwhile, high borrowing costs pose a serious threat to high-valuation stock markets, causing a rupture in the logic of global major asset classes, and market direction now hinges entirely on whether oil supply risks can be alleviated.

wallstreetcn08:56