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Sydney Morning Herald
11 hours ago
- Business
- Sydney Morning Herald
ASX set to slide, global markets fall on Middle East tensions; Oil rises
European shares skidded to an over one-month low on Thursday as escalating Middle East tensions and fears over potential US involvement rattled investors. The pan-European STOXX 600 closed down for the third consecutive day with a 0.8 per cent drop to its lowest level since May 9. Trading volumes remained thin as US markets were shut for a public holiday. The Australian sharemarket is set to slide lower, with futures at 4.52am AEST pointing to a fall of 28 points, or 0.3 per cent, at the open. The ASX dipped by less than 0.1 per cent on Thursday. The Australian dollar weakened. It was 0.5 per cent lower to 64.75 US cents at 5.23am. The week-old Iran-Israel conflict showed no signs of deescalation. Meanwhile, US President Donald Trump kept markets guessing about American involvement in air strikes on Tehran. Loading Markets were hopeful of talks between the US and Iran, and between the European Union and Iran on Friday, leading to a potential de-escalation in tensions. Much of the recent nervousness has been in markets centred around crude oil supply shocks, triggered by tensions in the oil-rich Middle East. Oil prices rose on the day and boosted the energy sector by 0.8 per cent, emerging as the session's top performer.
The Age
11 hours ago
- Business
- The Age
ASX set to slide, global markets fall on Middle East tensions; Oil rises
European shares skidded to an over one-month low on Thursday as escalating Middle East tensions and fears over potential US involvement rattled investors. The pan-European STOXX 600 closed down for the third consecutive day with a 0.8 per cent drop to its lowest level since May 9. Trading volumes remained thin as US markets were shut for a public holiday. The Australian sharemarket is set to slide lower, with futures at 4.52am AEST pointing to a fall of 28 points, or 0.3 per cent, at the open. The ASX dipped by less than 0.1 per cent on Thursday. The Australian dollar weakened. It was 0.5 per cent lower to 64.75 US cents at 5.23am. The week-old Iran-Israel conflict showed no signs of deescalation. Meanwhile, US President Donald Trump kept markets guessing about American involvement in air strikes on Tehran. Loading Markets were hopeful of talks between the US and Iran, and between the European Union and Iran on Friday, leading to a potential de-escalation in tensions. Much of the recent nervousness has been in markets centred around crude oil supply shocks, triggered by tensions in the oil-rich Middle East. Oil prices rose on the day and boosted the energy sector by 0.8 per cent, emerging as the session's top performer.
Business Recorder
13 hours ago
- Business
- Business Recorder
European shares dive as Mideast tensions, US involvement fears weigh
European shares skidded to an over one-month low on Thursday as escalating Middle East tensions and fears over potential U.S. involvement rattled investors. The pan-European STOXX 600 closed down for the third consecutive day with a 0.8% drop to its lowest level since May 9. Trading volumes remained thin as U.S. markets were shut for a public holiday. The week-old Iran-Israel conflict showed no signs of de-escalation. Meanwhile, U.S. President Donald Trump kept markets guessing about American involvement in air strikes on Tehran. Markets were hopeful of talks between the U.S. and Iran, and between the European Union and Iran on Friday, leading to a potential de-escalation in tensions. Much of the recent nervousness has been in markets centred around crude oil supply shocks, triggered by tensions in the oil-rich Middle East. Oil prices rose on the day and boosted the energy sector by 0.8%, emerging as the session's top performer. Healthcare and utilities were the only other sectors in the green. Conversely, travel and leisure stocks led broader declines and finished 2.3% lower, taking a hit from the soaring oil prices. 'When the main channel is through energy prices, you see some risk aversion and that's what we're seeing across European equities and that explains the subdued performance,' said Lilian Chovin, head of asset allocation at Coutts, referring to the Middle East tensions. Unpredictable policies European central bank decisions this week showed how Trump's unpredictable trade policies are complicating monetary policy. The Bank of England kept rates on hold, as expected, but flagged risks from a weaker labour market and higher energy prices. Britain's FTSE 100, which houses energy giants such as BP and Shell, lost 0.6%. The Swiss National Bank cut rates to zero as expected, while Norway's central bank delivered a surprise 25 basis-point cut, its first reduction in five years. Stocks in Oslo were up 0.7%. The Euro STOXX Volatility index touched its highest level since May 23 and was at 24.94. Fed Chair Jerome Powell said on Wednesday that inflation in goods prices is expected to go up over the summer as Trump's tariffs work their way to consumers. The mixed signals did not offer markets much clarity on how the Fed plans to navigate the uncertain economic environment. EU officials are increasingly resigned to a 10% rate on 'reciprocal' tariffs being the baseline in any trade deal between the United States and the EU, five sources familiar with the negotiations said. 'We understand Trump's reaction function and the constraints that apply to him and so investors are better able to form forward-looking views compared to two months ago,' Chovin added. Shares in recruitment companies in Europe slid after British recruiter Hays' forecast a more than 57% drop in annual operating profit. Rival firms Randstad Robert Walters and Adecco fell over 4.5% each. Among stocks, Stora Enso jumped 14.7% to top the STOXX 600 after the Finnish forestry group said it was initiating a strategic review of its Swedish forest assets.
3 days ago
- Business
US retail sales fall as Americans turn cautious after spending early to beat tariffs
WASHINGTON -- Retail sales fell sharply in May as consumers pulled back after a sharp increase in spending in March to get ahead of President Donald Trump's sweeping tariffs on nearly all imports. Sales at retail stores and restaurants dropped 0.9% in May, the Commerce Department said Tuesday, after a decline of 0.1% in April. The figure was pulled down by a steep drop in auto sales, after Americans ramped up their car-buying in March to get ahead of Trump's 25% duty on imported cars and car parts. Excluding autos, sales fell 0.3%. The sales drop comes after sharp declines in consumer confidence this year. Still, inflation has cooled steadily and unemployment remains low, which could fuel steady spending in the coming months, as the economy has remained mostly solid. Sales dropped 2.7% last month at home and garden centers, 0.6% at electronics and appliance stores, and 0.7% at grocery stores. There were some bright spots: Sales rose 0.9% at online retailers, 0.8% at clothing stores, and 1.2% at furniture stores.
Business Recorder
12-06-2025
- Business
- Business Recorder
Australian shares erase early gains to close lower
Australian shares gave up early advances to close lower on Thursday, as investors booked profits after encouraging cues from U.S.-China trade talks fuelled two sessions of record gains. The S&P/ASX 200 index ended 0.3% lower at 8,565.1 points after rising as much as 0.3% early in the session. The benchmark closed at record highs in the previous two sessions. Markets globally were closely monitoring the U.S.-China trade talks this week, which resulted in a framework agreement that would remove Chinese export restrictions on rare earth minerals and allow Chinese students access to U.S. universities. However, the United States saying it was readying a partial evacuation of its Iraqi embassy due to heightened security risks in the region proved a dampener for risk appetite. Back in Sydney, heavyweight financial stocks ended 0.5% lower, dragged down by the 'Big Four' banks, which fell between 0.2% and 0.8%. Australia's big lenders, often seen as the backbone of the economy, have seen a robust rally recently on expectations of lower near-term rates. Australian shares hit record peak as US-China revive trade truce Banking stocks, which have been beneficiaries from the last two rate cuts and the one expected in July, are naturally likelier candidates for any retracement or profit taking, said Junvum Kim, Asia Pacific senior sales trader at Saxo Markets. Energy stocks ended flat. The sub-index rose as much as 2.3% to hit its highest level since March 4 in early trade, following a jump in oil prices on escalating U.S.-Iran tensions. Gold stocks climbed 2.6%, limiting overall losses, as bullion prices firmed on escalating geopolitical tensions and a weaker dollar, while softer U.S. inflation data boosted expectations of Federal Reserve rate cuts. New Zealand's benchmark S&P/NZX 50 index rose 0.3% to finish the session at 12,649.1.
