Oil slumped and stocks gained after President Donald Trump said Israel and Iran had agreed to a ceasefire, spurring optimism there will be a lasting pause in the Middle-East conflict. Global benchmark Brent crude slid almost 5% in early Asian trading, briefly dropping below the level of June 12 when Israel attacked Iran’s nuclear sites. European and US stock-index futures both jumped, while MSCI’s Asia Pacific share gauge headed for its biggest gain in more than two months. The dollar fell against all its major peers and gold, a haven asset, dropped as much as 1%. Trump’s surprise statement on the Truth Social platform followed Iran’s strikes on a US base in Qatar Monday that were flagged in advance and seen as largely symbolic. His announcement follows a volatile period in which financial markets have been whipsawed for almost two weeks by concern the conflict would keep escalating. Brent slid toward $68 a barrel at the Asian open before trimming declines to be down about 2.8%, while West Texas Intermediate fell 3.2%. The MSCI Asia Pacific Index of shares jumped about 2%, with about four stocks gaining for every one that declined. South Korea’s Kospi was the best-performing major index in the region, surging as much as 2.9%. The risk-sensitive New Zealand and Australian dollars led gains in Group-of-10 currencies, followed by the yen. Treasuries were largely left behind by Tuesday’s market move, with the yield on the benchmark 10-year note dropping just one basis point to 4.34%. That was seen as due to uncertainty about what Federal Reserve Chair Jerome Powell will say this week in testimony before the House Financial Services Committee on Tuesday, and on Wednesday before the Senate Banking Committee. Treasuries had rallied Monday after Federal Reserve Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman both said they could support an interest-rate cut in July if inflation remains contained. Demand at a Japanese 20-year bond sale was lower than the average over the past year, indicating investors are still cautious even after the government adjusted its borrowing plans to calm a surge in yields. The bid-to-cover ratio — a key gauge of investor interest — at the Ministry of Finance’s sale of the debt was 3.11, less than some market participants were expecting. While the Middle-East conflict is dominating headlines, selloffs caused by geopolitical events tend to be brief, according to Morgan Stanley. According to the Morgan Stanley team, prior geopolitical risk events have led to some volatility for equities in the short term, but one, three and 12 months after the events, the S&P 500 has been up 2%, 3%, and 9%, on average, respectively. US After Hours KBH -2.6% lower on earnings; SBUX +0.7% weighing sale of China business, according to CaixinGlobal
Nikkei +1.23% Hang Seng +1.77% CSI +1.15% Shanghai +1.10% Shenzen +1.65%
Eur$ 1.1606 CNH 7.1765 CNY 7.1775 JPY 145.25 GBP 1.3571 CHF 0.8112 RUB 78.5001 TRY 39.6320 WTI$ 65.83 -3.95% Gold 3,329 -1.18% BTC 105,475 +1.61% ETH 2,418 +2.95%
S&P +0.75% Nasdaq +1% EuroStoxx +1.83% FTSE +0.50% Dax +1.90% SMI +1.60%
Macro :
- US arms groups woo European rivals as they target region’s rising spending
-
Keep an eye on :
Keep an eye on :
- ALO FP : Alstom Gets €1.7B Trainset Order for Paris-Region Rail Network
- BBVA SM : Spain to Add Hurdles to BBVA’s Sabadell Bid, Vanguardia Says
- BBVA SM : Spain to Add Hurdles to BBVA’s Sabadell Bid, Vanguardia Says
- BB FP : BIC Names Dayton Interim CFO After Spooner Decides to Step Down
- ACA FP : Credit Agricole Hires Former MUFG Markets Veteran Akira Kato
- ACA FP : Credit Agricole to Acquire BNP Monaco Wealth Management Clients
- ENGI FP : Engie Says French Renewables Ban Could Endanger €5 Billion Plan
- EQNR NO : Equinor’s Snorre A Shuts Down Production Due to Gas Leak: NRK
- FDJU FP : FDJ United Sees About 5% Average Organic Rev. Growth in 2025-28
- GALP PL : Portugal’s ENSE Says Gasoline Consumption Rose 8.4% in May
- GUMB BB : Gimv Sells Stake in Itineris to Cobepa: No Terms
- GF SM : Grifols Case Shows It Paid Family-Linked Entity More for Plasma
- HBH GY : Hornbach Holding 1Q Sales EU1.91B Vs. EU1.81B Y/y
- META US : Meta Held Deal Talks With Startup Runway in AI Recruiting Push
- BMPS IM : EU Examining Italy Government’s Monte Dei Paschi Stake Sale: FT
- 7201 JP : Nissan Investors Grill CEO Over Restructuring, Failed Honda Deal
- NOVOB DC : Novo’s Ozempic Gets Positive CHMP Opinion for Arterial Disease
- NOVOB DC : Hims & Hers Shares Sink After Novo Ends Partnership on Copycats
- OVH FP : OVH Groupe 3Q Like-for-Like Sales +9.3%
- RIO LN : Rio, Hancock to Invest $1.6b to Develop Iron Ore Project in WA
- SFL IM : Safilo Group, Carolina Herrera Renew Licensing Deal Until 2031
- SPM IM : Saipem Gets Contract for Venice Biorefinery Expansion
- SMCP FP : SMCP Says Legal Proceedings Initiated by Glas Are Progressing
- SMCI US : Super Micro Seeks $2 Billion Convertible Bond as Deals Ramp Up
- TEF SM : WOM Mulls Buying Telefonica Unit in Chile, CEO Says: El Mercurio
- TSLA US : Tesla Robotaxi Incidents Draw Scrutiny From US Safety Agency (1)
- UCG IM : Greek Premier to Meet UniCredit’s Orcel After Alpha Bank Deal