Oil prices dropped on Monday as Israel’s recent strike on Iran did not disrupt energy supplies, easing geopolitical tensions in the Middle East.
Meanwhile, Eli Lilly plans to launch its weight-loss drug, Mounjaro, in Hong Kong by the end of the year. In Japan, the yen fell sharply after the ruling coalition lost its parliamentary majority, raising concerns about future rate hikes. All this and more on this edition of World Street.
Calmer Crude
Oil prices tumbled on Monday after Israel’s retaliatory strike on Iran over the weekend bypassed Tehran’s oil and nuclear facilities and did not disrupt energy supplies, easing geopolitical tensions in the Middle East.
Both Brent and U.S. West Texas Intermediate crude futures hit their lowest levels since October 1. The geopolitical risk premium that had built in oil prices in anticipation of Israel’s retaliatory attack came off, according to analysts.
Slim Shot
Eli Lilly expects to start selling its weight-loss drug in Hong Kong as early as the end of this year. The drugmaker has received approval from the Hong Kong government to sell its tirzepatide injections – branded as Mounjaro – in a device called Kwikpen for both long-term weight management and type 2 diabetes, reported Bloomberg News. Tirzepatide is the active ingredient in the U.S. firm’s diabetes drug Mounjaro, and weight-loss drug Zepbound.
Political Pothole
The yen dropped sharply after Japan’s ruling coalition failed to secure a majority in parliament, sparking concerns over how political turbulence might impact the Bank of Japan’s future rate-hike trajectory.
The Japanese currency fell nearly 1% to 153.88 per dollar on Monday, marking its weakest level in three months, as Prime Minister Shigeru Ishiba’s decision to call a snap election appears to have misfired. The softer yen, however, provided a boost to Japan’s export-driven economy, lifting the Topix index up by as much as 1.6%.
China Liquidity Lever
China’s central bank is broadening its approach to manage liquidity more effectively as it introduces additional tools to fine-tune the economy. The People’s Bank of China (PBOC) announced it will carry out monthly outright reverse repurchase agreements with primary dealers, set for durations of up to a year.
This step aims to maintain stable liquidity in the banking system and expand the PBOC’s monetary policy options.
Olympus Plunge
Olympus Corp. ousted its CEO following an investigation into allegations he purchased illegal drugs, marking a swift and shocking exit for Stefan Kaufmann, who led the company for less than two years. Shares fell over 7% on Monday, their steepest intraday drop in nearly three months, after the announcement of Kaufmann’s immediate resignation.
Known initially for its cameras, Olympus declined to provide further details due to an ongoing investigation, while Kyodo News reported that Japanese police have launched their own inquiry.