Global shares decline as tensions simmer 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.
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.
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 ofIsrael'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.
'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
Scottish Sun
4 hours ago
- Scottish Sun
Hibs bank £1MILLION on flop striker who scored just five league goals in Scotland over two year period
He started last season brightly before being sent on loan IN THE MONEY Hibs bank £1MILLION on flop striker who scored just five league goals in Scotland over two year period Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) HIBS have banked £1 million by offloading flop striker Dylan Vente to SC Heerenveen. The Easter Road club have made a healthy profit on the 26-year-old, bought from Roda JC for £600,000 in 2023. Sign up for Scottish Sun newsletter Sign up 2 Hibernian have sold Dylan Vente to Dutch side Heerenveen Credit: Willie Vass 2 They're in profit after he impressed on loan at PEC Zwolle Credit: Getty Vente failed to spark in Scottish football, scoring eleven times but not succeeding to make any continuous impact. But he hit form last season during a loan in the Eredivisie, bagging 17 goals in 37 games for PEC Zwolle so has now won a permanent move back to Holland. Boss David Gray said: 'I'd like to start by wishing Dylan all the best for the future. 'He was a player that I enjoyed working with on the training pitch and someone that had a real desire to do well. 'He performed well in the Eredivisie with PEC Zwolle last season and felt more comfortable back in his homeland, playing football with a smile on his face. 'His time at Hibs didn't quite work out the way we'd all planned, but I'd like to thank him for all his hard work and hope he goes on to achieve his ambitions and full potential.' Hibs held out for a tidy sum for Vente, with several clubs interested in securing him after his form back home. Director of Football Malky Mackay said: 'There was a lot of interest in Dylan this summer after his performances last season, and he had a clear desire to continue playing and enjoying his football in the Eredivisie. 'We had to make sure that we got the right deal for Hibernian FC, and after a number of conversations, we're happy with the deal we've got for him. 'We wish him nothing but the best going forward.' Hibs chief Malky Mackay on his Celtic team-mate who could've been as good as Henrik Larsson Vente featured regularly during his first year at Easter Road but rarely played a full 90. He scored against Luzern in European competition and netted a further seven in all competitions in 2023-24. He flew out the gates last season with a hattrick in the first League Cup Group Stage match against Elgin City, but those were the last goals he would score for Hibernian. For the commencement of the league he was handed his homeland loan move, where he shone and ultimately laid the foundations for his permanent move away. Keep up to date with ALL the latest news and transfers at the Scottish Sun football page
Times
4 hours ago
- Times
The Chinese are opening London's priciest hotel – with a US twist
Donald Trump presents himself as the great dealmaker, a man who gets the best properties at the best locations for the best price, especially when it comes to opening hotels, like his Washington hotel. Radha Arora is about to put one over on him — in his own embassy. 'This is the best hotel, with the best address, in the No 1 city on the planet,' the president of Rosewood Hotels & Resorts said last week as he walked into the former US embassy on Grosvenor Square in London's Mayfair — soon to be the Chancery Rosewood hotel. The hotel, which will open in August, is the most expensive to be built in London: the £1 billion budget works out at £7 million for each of the 144 suites, which come with butler service. The 'cheapest' suite is £1,500 a night, and the two penthouse suites — named after British monarchs so loved by Trump, Elizabeth and Charles — will go for about £60,000 a night. Trump can only dream of such regal connections and rates.
Daily Record
5 hours ago
- Daily Record
Scathing Rangers claim I heard about Russell Martin is another language but I don't buy the speculation
Russell Martin will need the finely-tuned attributes of Harry Houdini when he starts work on Monday. The escapologist's speciality was being suspended upside down in a tank of water while handcuffed and wearing a straitjacket. He had three minutes to hold his breath and extricate himself from his constrictions. Or else. It's not a life-or-death scenario for the new head coach at Ibrox, despite what the more excitable might claim. But endangerments are building up. There's Panathinaikos in the Champions League qualifier next month – defeat over two legs looks unthinkable. There's a row over the circumstances that saw John Souttar put country before club, and delayed an operation, to be available for Scotland's recent two friendlies. Meanwhile, the club's activity in the transfer market has had the same grip on fans' imagination as FIFA's Club World Cup. Limited enthusiasm has been shown by a support who were expecting big bucks to be thrown at new players by Rangers' new owners, 49ers Enterprises. A civil ceremony to formalise the arranged marriage between the club and their backers will take place at an EGM at Ibrox on Monday. Shareholders will meet to approve £20m of fresh investment. Symbolically, it is a day when governance of the club is taken out of the hands of those who, historically, were brought up to support Rangers. Money knows no allegiance, however, and years of minimal success necessitates an influx of cash from anywhere, and San Francisco is as good a place as any. Martin comes into this potentially febrile environment with his eyes wide open and with a need to close his ears to the outside noise. I came back from the Highlands last Monday having watched two of my grandsons perform at Lochaber Provincial Mod. Then I turned on the radio and wondered if I was still dealing with the linguistic problem of not understanding a word. A Rangers supporter denounced Martin as a 'second-rate manager' and said Rangers would be lucky to finish in the Premiership's top six. It was a cultural rather than language barrier confronting me. My grandkids aren't Gaelic speakers but had learned their competition piece phonetically. The radio caller, on the other hand, was word perfect when it came to unfounded speculation. Martin has enough to worry about without fretting over guesswork. He faces a must-win match at Ibrox against Panathinaikos next month in his first competitive match. He'll need to wriggle out of that like Houdini would – because a lot of the players who had previously excelled on European nights at Ibrox are no longer there. That situation might worsen if Cyriel Dessers is sold from beneath him. Martin must focus on matters he can control and ignore irrelevant details like Gers never beating Panathinaikos in four previous meetings. The past has no relevance to the present or the future, which Russell must shape in a positive way. Monday begins a new era at Ibrox and the weight of history is on Martin's shoulders. Houdini was an illusionist too but the head coach will be under no illusions about his job. The difference between success and failure will be visible to all from every angle.
