The week's financial charts: Canada, Nvidia, and the ROI-Hormuz gridlock
Every Friday, Open Interest distills the week's financial data into five charts that highlight the main trends, surprises and overlooked movements.
1. HORMUZ HOSTAGE RON 'BOUSSO, ROI energy columnist: Gulf oil exports via the Strait of Hormuz are still constrained six -months after the Iran War, underscoring the.risks associated with one of the.most critical.energy chokepoints in the world. The oil prices eased initially this week as Washington's "economic D-Day sanctions" proved to be less disruptive than expected, and Oman-Iran talks raised hopes of a short-term shipping arrangement. The conflict has hardened into a stalemate which could last until 2027. Energy markets are held hostage and inflation is high, while neither side is willing or able to back down.
2. TRADE WAR REDUX - JAMIE MCGEEVER, ROI Markets columnist: The U.S. Canada trade spat is escalating again. It shows how President Donald Trump’s tariffs have reshaped America's relationship with its trading partners. Washington slapped tariffs of 50% on a range of imports coming from its northern neighbor, and second-largest trade partner. The same tariffs were also threatened on autos. Ottawa has promised to respond "dollar for dollar". The impact of escalating the dispute could extend beyond the borders of the two countries.
3. NVIDIA HIGH BAR ANNA SZYMANSKI ANNA SZYMANSKI is the Editor-in Charge of ROI. Nvidia reported strong results for its second quarter this week. This lifted Nvidia's share price. The chip giant predicted a revenue jump of?70% next fiscal year. This shows that the AI boom won't be slowing down anytime soon. The stock's performance is still disappointing, but it shows how much of chipmaker's explosive expansion has already been priced in.
4. FED'S OLD NEW DEBATE MIKE DOLAN, ROI Finance & Markets columnist: As central banks gather in Wyoming for their annual Jackson Hole Summit, questions are raised regarding the possible reforms proposed by the new Federal Reserve chair Kevin Warsh. He has called for?the reintroduction money-supply aggregates to the central bank's analysis of policy, reopening an old debate about monetarism and inflation targeting. Warsh's desire to relax monetary policy would be a strange battle to fight, given the fact that money supply growth exceeds 5% per year. There is some merit to the argument for examining money supply. However, it would expose an unpalatable truth for Feddoves: credit and asset metrics indicate the most lenient financial conditions in four-years.
5. A PRICIER FURTURE GAVIN MAGUIRE, ROI Global Energy Transition?Columnist : Europe's forward curve for diesel fuel indicates that traders expect fuel costs to remain high through 2027. Energy production is still uncertain and there are?flows of oil from the Middle East and Russia. Traders expect fuel prices to remain high through 2027.
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(source: Reuters)
