Oil Prices Decline as Demand Outlook Softens Amid Market Caution

Oil prices hit seven-week lows on Tuesday due to a softening demand outlook, while bond, currency, and stock markets traded cautiously ahead of central bank meetings in the US and Japan and a slew of major corporate earnings reports. While the price of copper, iron ore, zinc, and aluminum dropped, Brent crude futures hit $79.36. The S&P 500 has steadied after a two-week downturn, and European futures edged 0.1% higher. Japanese government bond yields edged lower, while U.S. Treasury yields were steady at 4.186%. Markets are pricing almost no chance of a U.S. rate cut this week, but have fully priced a 25-basis-point reduction in the Fed Funds rate for September.