Global shares decline as tensions simmer in the Middle East
Global shares retreated on Thursday as worries persisted about conflict in the Middle East.
On the seventh day of a conflict that began with a surprise wave of Israeli airstrikes targeting military sites, senior officers and nuclear scientists, Iranian state media reported that Iran's foreign minister planned to meet his European counterparts in Geneva.
Meanwhile, Israel carried out strikes on Iran's Arak heavy water reactor, in its latest attack on Iran's sprawling nuclear programme.
The escalating warfare has shaken financial markets.
A dealer watches his computer monitors showing the Korea Composite Stock Price Index (Lee Jin-man/AP)
France's CAC 40 slipped 0.8% in early trading to 7,593.06. In Germany, the DAX fell 0.9% to 23,141.82. Britain's FTSE 100 lost 0.5% to 8,797.24. The futures for the S&P 500 and the Dow Jones Industrial Average were 0.4% lower.
The Federal Reserve opted on Wednesday to keep its key interest rate unchanged, while its policymakers signalled that they still expect to cut rates twice this year. They project that US president Donald Trump's higher import duties will fuel inflation. They also expect growth to slow and unemployment to edge higher.
The Bank of England likewise kept its key interest rate unchanged at 4.25% at its meeting on Thursday, after cutting it twice this year.
Switzerland's central bank cut its target interest rate by a quarter of a percentage point to zero on Thursday, saying that inflationary pressures have eased.
It is among many central banks opting to go ahead and ease the cost of borrowing as uncertainty over Mr Trump's tariffs and geopolitical crises threaten global growth.
US financial markets were closed on Thursday for the Juneteenth holiday (Yuki Iwamura/AP)
In Asian trading, Japan's benchmark Nikkei 225 shed 1.0% to finish at 38,488.34. Shares in Japan's Nippon Steel Corp jumped 2.3% after it announced that its acquisition of US Steel, which met US government opposition for more than a year, was finally completed.
Hong Kong's Hang Seng dropped 2.0% to 23,237.74 on heavy selling of tech-related shares, while the Shanghai Composite lost 0.8% to 3,362.11.
Australia's S&P/ASX 200 was little changed at 8,523.70 and in South Korea, the Kospi rose 0.2% to 2,977.74.
US financial markets were closed on Thursday for the Juneteenth holiday, an annual federal holiday in the US.
So far, US inflation has remained relatively tame, and it is near the Fed's target of 2%. But economists have been warning it may take months to feel the effects of tariffs. And inflation has been feeling upwards pressure recently from a spurt in oil prices because of
Israel's fighting with Iran.
Fed officials are waiting to see how big Mr Trump's tariffs will ultimately be, what they will affect and whether they will drive a one-time increase to inflation or something more dangerous. There is also still deep uncertainty about how much tariffs will grind down on the economy's growth.
We'll make smarter and better decisions if we just wait a couple months or however long it takes to get a sense of really what is going to be the passthrough of inflation and what are going to be the effects on spending and hiring
'Because the economy is still solid, we can take the time to actually see what's going to happen,' Fed chair Jerome Powell said.
'We'll make smarter and better decisions if we just wait a couple months or however long it takes to get a sense of really what is going to be the passthrough of inflation and what are going to be the effects on spending and hiring and all those things,' he said.
In other dealings early on Thursday, benchmark US crude rose 13 cents to 73.63 US dollars. Brent crude, the international standard, advanced 7 cents to 76.77 dollars a barrel.
Oil prices have been yo-yoing as fears rise and ebb that the conflict between Israel and Iran could disrupt the global flow of crude. Iran is a major producer of oil and also sits on the narrow Strait of Hormuz, through which much of the world's crude passes.
In currency trading, the US dollar rose to 145.46 Japanese yen from 145.13 yen. The euro cost 1.1476 dollars, down from 1.1484 dollars.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Independent
9 hours ago
- Irish Independent
Coinbase becomes second major crypto firm to move regulatory hub out of Ireland in 2025
The company has obtained its Markets In Crypto Assets (Mica) licence, a foundational legal instrument for trading across the EU 27 countries, in Luxembourg. In 2023, Coinbase had said that Ireland was chosen from 27 EU countries to be its regulatory and operational hub for Europe, citing a 'stable political environment for technology innovation', 'respected regulators' and being 'a jurisdiction that is familiar and comfortable with both financial services and technology.' Since then, the Irish Central Bank has consistently denigrated crypto as a sector, with Governor Gabriel Makhlouf publicly branding virtual currencies as 'Ponzi schemes'. Coinbase CEO, Brian Armstrong, said in an interview with CNBC that the company has moved to Luxembourg for regulatory reasons. 'Luxembourg is leading the way with its pro-business climate and thoughtful approach to regulation,' he said. Earlier this year, another prominent crypto company also switched its regulatory hub away from Ireland, where it had initially established its European base. Gemini, the cryptocurrency exchange founded by the US billionaire Winklevoss twins, switched its headquarters from Ireland to Malta, citing a better environment for 'innovation among fintech and digital assets'. Senior figures in the Irish cryptocurrency and blockchain industry have expressed concern that a lack of Irish interest in cryptocurrency regulation is driving companies and jobs away. Earlier this year, the Central Bank tendered for consultants to advise it on crypto regulation, after the EU's main Mica rules had already come into force, prompting accusations of being a party-time regulator from prominent Irish crypto figures. In a move to reassure Irish staff of Coinbase's future here, the company's vice president and regional managing director, Daniel Seifert, said that it would soon hire more people for its Dublin office. ADVERTISEMENT "Regarding Ireland, we are happy to announce that Coinbase is doubling down on its commitment to the country and we are imminently adding around 50 jobs to our office,' he said. Coinbase is understood to employ over 100 people at present, having shed almost half of its staff during the tech industry's post-Covid layoffs. 'Our e-money licence through which we service customers across the EU is held in Ireland,' said Mr Seifert. 'I have relocated to Ireland, as CEO of the Irish entity, demonstrating our commitment to scaling international operations and deepening our presence in Europe, one of the most strategic and rapidly evolving crypto markets globally."
Irish Examiner
10 hours ago
- Irish Examiner
Ireland ends coal power generation at Moneypoint
Ireland has ended coal power generation, joining a growing group of European countries that have eliminated the fuel from their electricity mix. The closure of Moneypoint's coal operations makes Ireland Europe's sixth country to exit coal as renewables continue to increase their share of power generation. The station in Co Clare will continue to operate, serving as a back-up role, burning oil under emergency instruction from EirGrid until 2029. Moneypoint is one of Ireland's largest energy generation stations and was developed in the 1980s to mitigate against the then oil crisis. Cathal Marley, Chief Executive of EirGrid, said the change marks a significant milestone for the country's electricity system. "While Moneypoint will no longer use coal, we entered an agreement with ESB, following direction from our regulator, CRU, to make Moneypoint units available on a temporary basis as out of market units up to 31st March 2029. "The units will operate using oil as the primary fuel source and will support the overall adequacy position for Ireland, alongside the other measures in CRU's Security of Supply Programme.' Paddy Hayes, Chief Executive of ESB said the teams working at Moneypoint and the communities across West Clare have been at the heart of powering Ireland's electricity system for the best part of 40 years. Friends of the Earth Ireland also welcomed the move, saying the cessation of coal operations at Moneypoint fires the starting gun on what could be a defining summer for Europe's coal phase-out, with Spain and Italy set to follow suit in the coming months, with the anticipated shutdown of their remaining mainland coal plants. Read More Proposal excuses new data centres from using renewable sources as back-up electricity
The Irish Sun
11 hours ago
- The Irish Sun
New £3billion fleet of more than 90 air-conditioned trains promised for the end of 2025 delayed for another YEAR
A HIGHLY-ANTICIPATED fleet of air-conditioned London Underground trains have been delayed by another year. The new £3 billion tube trains were expected to be in use by the end of the year. Advertisement 2 The Piccadilly line is set to see 94 new trains launched by the end of next year (stock image) Credit: AP The launch of the 'game-changing' fleet on the Piccadilly line will now be delayed by up to a year, according to This massive blow to London commuters comes after the fleet was revealed to be the first 'deep level' Tube trains to be air conditioned. The eagerly-awaited fleet, which consists of 94 trains, will offer 10% more capacity as well as wider doors for quicker boarding, walk through carriages, and CCTV. They will replace an 'age expired' fleet of Advertisement Read More On Travel The update will enable peak-hour frequencies to be increased from 24 to 27 trains an hour, and will eventually see 36 trains running each hour, equivalent to the Victoria line. Transport for London (TFL) originally announced the first new Piccadilly line train would enter passenger service by the end of 2025. However, TfL publicly confirm on Friday, June 20 that the new trains are now not expected until the 'second half of 2026'. This delay has been caused by unexpected difficulties in introducing the first new train to challenging 'real life' conditions on London Underground infrastructure. Advertisement Most read in News Travel The new trains are understood to have performed well on the test track. While first batch of trains are being built by Siemens in Vienna, Austria, the bulk of the order will be assembled at Siemens' new factory in Goole, east Yorkshire. Inside world's craziest city where you never know which floor you're on, trains run through houses & maps are useless A source told The Standard that the electrical equipment underneath the new trains was 'not in the right alignment'. TfL confirmed on Friday that 'the start of a rigorous programme of testing the interactions with the infrastructure and systems is delayed until the summer'. Advertisement Part or full closures of the Piccadilly line will continue over the weekends to prepare the stations for the new nine-carriage trains. Stuart Harvey, TfL's chief capital officer, who is in charge of the introduction of the new trains, spoke on the latest update. 'It will obviously be disappointing for customers that they will have to wait a bit longer for the new trains, and I regret that," he said. Three scenic train journeys you can take in the UK Cornish Coast - One trip that rail enthusiasts seem to love is along a stretch of the Cornish coast and takes just 10 minutes to complete. The route from St Erth to St Ives only stops at Carbis Bay en route to its final destination, but the views out the window for the whole journey are pretty spectacular. Another highlight of the journey is that St Ives station is situated right next to Meanwhile, the station is less than a ten minute walk into town, where the harbour, shops, galleries and pubs can be explored. Durham to Edinburgh - Another train route that people in the UK love is the East Coast train line between Durham and Edinburgh, with coastal views and city landscapes among the sights that can be seen out the window. Newcastle, Berwick, Lindisfarne and Durham Cathedral are all among the highlights on that route. Scotland's West Highland Line - While Scotland is home to plenty of famous landmarks and top attractions, it also has one of the most breathtaking train routes in the world. Scotland's West Highland Line has previously been dubbed the best rail journey in the world by The journey from Glasgow to Fort William is one of my favourite train routes - and I've With mountain landscapes, serene lochs, wistful moors, and wildlife all visible through the 'But I would like to assure Londoners and visitors to our city that we are working extremely closely with Siemens to ensure that the new trains can be introduced as soon as possible." Advertisement He estimated that the first fleet will come into operation "in the second half of next year", with a new 'window' set between July and December 2026. "Siemens and TfL are absolutely focused on trying to achieve the July end of the window,' he said. 'But it's too early to say we can get that yet.' He added that the hope is that all 94 trains will be in service '18 to 20 months' after the first one starts running. Advertisement This would meaning the entire fleet would be in operation by the end of 2027 or early 2028. This delay means Underground passengers face an additional summer of soaring temperatures on the Picadilly line. 2 The delay in the new Picadilly trains means passengers will face another summer of commuting with no air conditioning in carriages (stock image) Credit: Alamy The first new Picadilly train arrived in London last October, and was spotted overnight on Underground tracks in west London in March. Advertisement The TFL rep said the new trains would have a 'transformative effect' in the capital. The Piccadilly line connects King's Cross and the West End with Heathrow airport and beyond and is used for more than 10% of all daily Tube journeys – about 160 million trips a year. And Plus, the Advertisement A
