The dollar and oil pared an early advance, as traders awaited Tehran’s response after Washington struck Iran’s nuclear sites over the weekend. A Bloomberg gauge of the greenback climbed 0.2%, while global crude benchmark Brent rose almost 2% after surging as much as 5.7%. Contracts for the S&P 500 declined around 0.3% and a gauge of Asian equities fell to the lowest since early June. Treasury yields ticked higher. Oil remained the primary focus as any disruption to traffic through the Strait of Hormuz, a major artery for global crude and natural gas, has raised the specter of a spike in energy prices. While Iran’s Foreign Minister Abbas Araghchi said the country reserves all options to respond, there haven’t yet been any signs of actual disruption to physical oil flows. Market reaction had been generally muted since Israel’s initial assault this month. Even after falling for the past two weeks, the S&P 500 is only about 3% below its all-time high from February. The dollar has climbed just over 1% since hitting a three-year low earlier this month. Whether this will hold depends a lot on Iran’s next move, according to some market watchers. If oil flows through the Strait of Hormuz were to drop by half for a month, and remained 10% lower for another 11, Brent would spike briefly to as much as $110 a barrel, according to Goldman Sachs Group Inc. Iran has vowed to impose “everlasting consequences” for the bombing. Meanwhile, Israel resumed its assaults, targeting military sites in Tehran and western Iran. The downside may be limited because some market participants have been preparing for a worsening conflict. The MSCI All Country World Index has pulled back 1.5% since Israel attacked Iran on June 13. Fund managers have reduced their stock holdings, shares are no longer overbought and hedging demand has increased, meaning a deep selloff is less likely at these levels. Meanwhile, credit spreads on Asian high-grade dollar bonds widened the most in five weeks. On the equities front, shipping stocks such as Ningbo Marine and Nanjing Tanker advanced on speculation that tanker freight rates may rise following the US airstrikes. Asian defense stocks rose while airline shares declined on the back of higher oil prices. Shares of Taiwan Semiconductor Manufacturing Co. retreated after the Wall Street Journal reported a US Commerce Department official has told top chip companies he wants to revoke waivers they have used to access American technology in China. Samsung Electronics Co. and SK Hynix Inc. also fell. Elsewhere, Federal Reserve Bank of San Francisco President Mary Daly on Sunday said she sees the central bank’s monetary policy stance as “in a good place” currently, with risks to its US employment and price stability mandates as roughly equal. Daly said she sees the central bank cutting rates in the fall, later than Governor Christopher Waller who said Friday he sees a move as soon as July. Traders will be parsing economic activity data in Europe and the US later Monday to gauge whether the US trade war has crimped factory output ahead of the July 9 reciprocal tariff deadline. European Central Bank President Christine Lagarde is also due to speak.
Nikkei -0.16%% Hang Seng +0.32%% CSI -0.07% Shanghai +0.29% Shenzen +0.48%
Eur$ 1.1483 CNH 7.1842 CNY 7.1815 JPY 146.52 GBP 1.3415 CHF 0.8188 RUB 78.50 TRY 39.7157 WTI$ 75.76 +2.67% Gold 3,366 -0.12% BTC 100,835 +1.28% ETH 2,237 +2.10%
S&P -0.18% Nasdaq -0.22% EuroStoxx -0.44% FTSE -0.35% Dax -0.56% SMI -0.75%
Macro :
- US ‘Obliterated’ Iran Nuclear Facilities, Trump Says in Address
- 5.1 Mag. Earthquake Strikes 36 KM SW of Semnan, Iran: USGS
- 5.1 Mag. Earthquake Strikes 36 KM SW of Semnan, Iran: USGS
- Orano Opposes Niger’s Plan to Nationalize Its Somair Uranium Ops
- Senate Weighs Effectively Killing Rule That Drove Rise of Fuel-Efficient Cars -- WSJ
Keep an eye on :
Keep an eye on :
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- AAPL US : Apple Seals Movie Deal With Media Mogul Peter Chernin
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- BNTX US : BioNTech Treatment Granted Orphan Drug Status by FDA
- BLK US : BlackRock managing director resigns
- BA U S: Boeing Starts Contract Talks With IAM Fighter Jet Workers
- BA U S: Boeing Starts Contract Talks With IAM Fighter Jet Workers
- CON GY : Continental’s Split Shows Germany’s Business Model Is Shifting
- EDF FP : EDF in Pact With Apollo to Issue Up To £4.5b bonds
- EDF FP : EDF May Curb French Nuclear Output From Monday Due to Heat
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- FNAC FP : Fnac Darty Eyes More Growth in Italy via M&A, CEO Tells Corriere
- HOT GY : Hochtief, Ionos Apply for EU AI Gigafactory Project
- HSBA LN : HSBC eyes AI bots to replace back office jobs
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- LLOY LN : Lloyds Banking Group moves £6bn pension fund in house
- LUNB DC : Lundbeck Says Vyepti Trial Shows Improvement in Chronic Migraine
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- NOVOB DC : GLP-1s Poised for ‘Paradigm Shift’ in Heart Disease, BMO Says
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- NOVOB DC : Novo Nordisk Advances Amycretin to Ph.3 Based on Early Trials
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- PRX NA : Prosus Reports First Profit Under CEO Bloisi’s New Strategy
- RECSI NO : REC Silicon Warns of Urgent Financing Needs
- RGLS US : Novartis Says HSR Waiting Period for Regulus Offer Has Expired
- Revolut IPO : Revolut CEO May Win Musk-Style Payout at ~$150B Valuation: FT
- ROG SW : Roche’s Lunsumio Combo Significantly Prolongs Remission for LBCL
- ROG SW : Roche Says Early NXT007 Data Supports Progression Into Phase III
- RR/ LN : UK lobbies South Korea to switch to Rolls-Royce for new fighter jet programme
- MSTR US : AQR’s Asness Sides With Chanos in Critique of Saylor’s Strategy
- TSLA US : Tesla Says it Plans Capex of Around $8B in US This Fiscal Year
- TSLA US : Tesla Starts Long-Awaited Robotaxi Service With Low-Key Rollout
- 9983 JP : Uniqlo Parent Says France Unit Pursuing Turnaround Plan
- WOLF US : US semiconductor maker Wolfspeed to file for bankruptcy