Oil Prices Hit their Highest since July 2015

YemenExtra

Asian shares stepped back from recent decade highs on Monday while major currencies held in tight ranges and oil jumped to a more than two-year .

Oil prices hit their highest since July 2015 as Mohammed bin Salman’s purge led to arrests of royals, ministers and investors including prominent business billionaire Alwaleed bin Talal. [O/R]

The news stirred concerns of Middle East money pulling out of some Asian markets. In addition, a weekend call by China’s central bank governor for tougher financial regulation hit investor sentiment.

The negativity spread with futures hinting of a soft opening for European and U.S. bourses. FTSE futures FFIc1 slipped 0.2 percent while S&P E-mini futures ESc1 edged 0.1 percent lower.

“It was a very disappointing day for Asian shares today,” said Michael McCarthy, Sydney-based strategist at CMC Markets.

“We were looking for a much better day after positive leads from Europe and the U.S. But most markets fell victim to their own successes… the fact that they had moved higher in a very short time led investors to turn cautious now.”

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.2 percent to drift away from Friday’s top of 557.9, the highest since November 2007.

South Korea’s KOSPI .KS11, which hit a record high last week, skidded 0.6 percent early on before paring losses to 0.3 percent. Hong Kong’s Hang Seng Index .HSI fell 0.2 percent. The Hong Kong China Enterprises Index .HSCE lost 0.9 percent.