Bears, Bonds, and $100 Oil Shape Monday's Market

Energy Takes Centre Stage

Oil is closing in on $100 a barrel as Houthi strikes hit Saudi energy facilities, including sites near Jizan close to the Yemen border. Traders warn supply disruptions are intensifying. The FT notes inventories are eroding and shipping attacks are mounting. Energy options flow is heating up in parallel, with call buyers active across the sector. Brent pushing toward triple digits would feed directly into inflation expectations — a problem for central banks on both sides of the Atlantic.

UK Bond Market Under Pressure

The UK paid its highest borrowing cost since 1998 at a gilt auction today. Thirty-year gilts cleared at a yield of 5.82%. That underscores how much pressure rising global bond yields are placing on public finances. European markets closed lower broadly, though defence stocks rallied after Ukraine ratified a $105 billion EU loan deal.

US: Freight and Tech in Focus

Citigroup's dual upgrade of ODFL and CHRW to Buy signals renewed optimism on US trucking demand. Yet short sellers are moving the opposite direction — KNX saw short interest nearly double in a week. The freight picture is clearly contested.

TSLA got a boost from Goldman Sachs. Analysts estimate the Cybercab could undercut Waymo on cost by up to 30 cents per mile. Meanwhile, a Google and Blackstone data centre venture is facing site delays, according to Bloomberg — a headwind for the AI infrastructure buildout narrative.

Earnings This Week

BRZE raised full-year guidance after the bell, beating estimates on both EPS and sales. ORCL and ADBE report Thursday. RH, with 34.6% of its float shorted, is the most combustible setup of the week.