Oil eases, bringing some respite to stocks and battered bonds
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Oil prices have eased, and the drop in crude has brought a measure of relief to markets that badly needed it. Stocks caught a breather as energy costs retreated, taking some pressure off after a stretch of heavy losses. Bonds, battered through recent turbulence, also got a little respite. The connection is straightforward, since stubborn oil prices stoke inflation worries and keep bond investors on edge. Cheaper crude softens those fears, at least for the time being. Traders know the reprieve could be short-lived if supply or demand shifts again. Central bank decisions also loom, and energy prices remain one of the inputs they follow closely. For the moment, softer oil has given shares and bonds room to steady themselves.