James Gruber

Well, oil is back in the spotlight after prices surged overnight as hopes for a near-term resolution to the standoff in the Strait of Hormuz faded.

That again fuelled concerns about inflation, which impacted stocks and bonds in both the US and Europe.

Meanwhile, the US Federal Reserve kept interest rates on hold, as expected, at the conclusion of what's likely to be the last monetary policy meeting under Chair Jerome Powell.

Investors are also eagerly awaiting results from five of the mega-cap tech companies in the US over the next 24 hours or so.

As we go to air, those mega-cap tech company results are coming out.

Microsoft revenue beat guidance, yet its shares are relatively flat in after-hours trading, while Meta increased its investment spend on AI and that's sent its shares tumbling after-hours

down around 6% as we speak.

Let's take a deeper look at what's happened with Aussie futures, commodities and currencies now.

The ASX is poised to open lower with index futures down 0.6%.

Speaking of the ASX 200, yesterday it ended down 0.3% at $8,687, the lowest close in almost a month.

The

The benchmark has lost nearly 3% over the past seven consecutive sessions, marking its longest losing streak since mid-June 2022.

Despite yesterday's data showing softer-than-expected headline inflation,

Inflation for March rose 4.6% year-on-year, below market expectations for a 4.8% rise, but the trimmed mean inflation number increased 3.5% year-on-year for the March quarter, in line with consensus estimates.

Markets are now factoring in a 74% chance of a 25 basis point rate hike from the RBA next week, down from 84% prior to the inflation data.

Turning to commodity markets, on those oil prices, they rose to the highest in nearly a month as deadlocked US-Iran negotiations made investors more concerned about prolonged disruptions to Middle Eastern supply.

US government data showed a bigger weekly draw in crude inventories than expected, which also put upward pressure on oil prices.

Brent crude futures settled 6% high, just above US$118 a barrel.

Base metal prices were lower on Wednesday as fears over global economic growth returned due to rising oil prices.

Copper futures were down 0.7%, while aluminium futures were 1.6% lower.