Latest news with #CapitalCom
Yahoo
3 days ago
- Business
- Yahoo
Stocks tumble, dollar up as Middle East war lights safe-haven trade
By Kevin Buckland, Johann M Cherian and Amanda Cooper TOKYO/LONDON (Reuters) -Global stocks fell and the dollar rose on Thursday, reflecting investors' preference for perceived safe havens as concerns mounted over possible U.S. involvement in the Israel-Iran air war, which has ignited a rally in the oil price this week. On the geopolitical front, President Donald Trump kept the world guessing about whether the United States would join Israel's bombardment of Iranian nuclear sites, telling reporters outside the White House on Thursday: "I may do it. I may not do it." A flurry of central bank decisions in Europe highlighted how Trump's erratic approach to trade and tariffs has complicated the job of central bankers in setting monetary policy. In Europe, the STOXX 600 fell 0.6%, set for a third day of declines, having dropped nearly 2.5% on the week, which would mark its biggest week-on-week decline since the tariff-induced turmoil of April. U.S. S&P 500 futures fell almost 1%, although most U.S. markets - including Wall Street and the Treasury market - will be closed on Thursday for a public holiday. "Market participants remain edgy and uncertain," said Kyle Rodda, senior financial markets analyst at Speculation was rife "that the U.S. will intervene, something that would mark a material escalation and could invite direct retaliation against the U.S. by Iran", he added. "Such a scenario would raise the risk of a greater regional conflict, with implications for global energy supply and probably economic growth." Much of the recent nervousness in markets has been centred around crude supply shocks from the Middle East, which has driven the price of crude oil up by 11% in a week. Brent crude shot up 2% to $78 a barrel on Thursday, close to its highest since January. Gold traded around at $3,365 an ounce, slightly lower on the day. The dollar itself rose broadly, leaving the euro down 0.2% at $1.1462 and the Australian and New Zealand dollars - both risk-linked currencies - fell around 1%. CENTRAL BANK POLICY The Federal Reserve left interest rates unchanged on Wednesday, much to Trump's displeasure, and policymakers retained projections for two quarter-point rate cuts this year. Fed Chair Jerome Powell struck a cautious note about further easing ahead, saying that he expects "meaningful" inflation ahead as a result of Trump's aggressive trade tariffs. Strategists at MUFG said the Fed "is underestimating the weakness in the economy that was present before the tariff shock, specifically, almost ignoring the cracks that have been visible in the labor market for years." On Thursday, the Bank of England left UK rates unchanged, as expected, and policymakers said trade policy uncertainty would continue to hurt the economy, triggering a drop in the pound. The Norges Bank surprised markets on Thursday with a quarter-point cut that weighed on the crown currency, while the Swiss National Bank cut interest rates to zero, as expected, but the fact it did not go below zero gave the franc a lift, leaving the dollar down 0.1% at 0.8184 francs. In commodity markets, the price of platinum hit its highest in almost 11 years, near $1,300 an ounce, driven partly by what analysts said was consumers seeking a cheaper alternative to gold. (Additional reporting by Kevin Buckland in Tokyo and Johann M Cherian in Bengaluru, Editing by Shri Navaratnam, Bernadette Baum and Ed Osmond)
CNA
4 days ago
- Business
- CNA
Stocks tumble, safe havens gain as Middle East conflict flares
TOKYO/LONDON :Global stocks fell and the dollar rose on Thursday as investors, concerned over the United States' possible entry into the Israel-Iran air war, sought safe haven assets and ditched riskier ones. President Donald Trump kept the world guessing about whether the United States would join Israel's bombardment of Iranian nuclear sites, telling reporters outside the White House on Thursday, "I may do it. I may not do it." The Wall Street Journal reported that Trump had told senior aides he approved attack plans on Iran but was holding off on giving the final order to see if Tehran would abandon its nuclear programme. In Europe, stocks fell for a third day, leaving the STOXX 600 down nearly 2.5 per cent on the week, set for its biggest week-on-week decline since the tariff-induced turmoil of April. U.S. S&P 500 futures fell 0.6 per cent, although most U.S. markets - including Wall Street and the Treasury market - will be closed on Thursday for a public holiday. "Market participants remain edgy and uncertain," said Kyle Rodda, senior financial markets analyst at Speculation was rife "that the U.S. will intervene, something that would mark a material escalation and could invite direct retaliation against the U.S. by Iran," he said. "Such a scenario would raise the risk of a greater regional conflict, with implications for global energy supply and probably economic growth." Much of the recent nervousness in markets has been centred around crude supply shocks from the Middle East, which has driven the price of crude oil up by 11 per cent in a week. Brent crude rose nearly 1 per cent to $77.40 a barrel, close to its highest since January. Gold, which tends to struggle when the dollar gains, pared earlier losses to trade at $3,366 an ounce. The dollar itself rose broadly, leaving the euro down 0.1 per cent at $1.1466 and the Australian and New Zealand dollars - both risk-linked currencies - down 0.7 per cent and 1 per cent, respectively. CENTRAL BANK POLICY Overnight, the Federal Reserve delivered some mixed signals to markets. Much to Trump's displeasure, policymakers held rates steady as expected and retained projections for two quarter-point rate cuts this year. However, Fed Chair Jerome Powell struck a cautious note about further easing ahead, saying at his press conference later that he expects "meaningful" inflation ahead as a result of Trump's aggressive trade tariffs. Strategists at MUFG said the Fed "is underestimating the weakness in the economy that was present before the tariff shock, specifically, almost ignoring the cracks that have been visible in the labor market for years." "We maintain our view that the longer they wait to ease, the more they may need to do." Markets will now look to a string of central bank policy decisions out of Europe for any possible catalysts. The Swiss National Bank cut interest rates to zero, as expected, leaving the franc to drift as markets had priced in a roughly-20 per cent chance of a half-point cut. "The SNB's main concern may not be avoiding the impression of being a currency manipulator – still it is politically wise not to appear too trigger-happy to go negative with the policy rate," Karsten Junius, chief economist at J Safran Sarasin, said. The franc, which has been a major beneficiary of safe-haven buying this year, was last steady against both the dollar, at 0.819 francs, and the euro at 0.9395 francs. The Bank of England is up next and is expected to keep UK rates unchanged. Data on Wednesday showed inflation cooled as expected last month, although food prices shot up and policymakers will be considering the potential impact from higher energy prices in light of the Israel-Iran war. Sterling edged 0.1 per cent lower to $1.341.
CNA
4 days ago
- Business
- CNA
Stocks slip, safe havens gain as Middle East conflict rages
TOKYO :Global stocks edged lower on Thursday while investors took cover in safe havens such as gold and the U.S. dollar gained as financial markets were on edge over the possible entry of the United States into the week-old Israel-Iran air war. President Donald Trump kept the world guessing about whether the United States will join Israel's bombardment of Iranian nuclear sites, telling reporters outside the White House on Thursday, "I may do it. I may not do it." The Wall Street Journal said Trump had told senior aides he approved attack plans on Iran but was holding off on giving the final order to see if Tehran would abandon its nuclear programme. Europe's main equities index pointed to a lower open, while Germany's DAX futures were down 0.3 per cent in Asia afternoon hours. U.S. S&P 500 futures slipped 0.1 per cent, although most U.S. markets - including Wall Street and the Treasury market - are closed on Thursday for a national holiday. "Market participants remain edgy and uncertain," said Kyle Rodda, senior financial markets analyst at "Speculation remains rife – fed probably strategically by the Trump administration – that the U.S. will intervene, something that would mark a material escalation and could invite direct retaliation against the U.S. by Iran," he said. "Such a scenario would raise the risk of a greater regional conflict, with implications for global energy supply and probably economic growth." Much of the recent nervousness in markets has been centred around crude supply shocks from the Middle East which were reflected in elevated crude prices. Brent crude edged down to $76.6 per barrel on the day, but remained not far from the 4-1/2-month peak of $78.50 reached on Friday. The gloomy mood hampered Asian stocks, with Taiwan's stock benchmark down 1.5 per cent, and Hong Kong's Hang Seng sliding 2 per cent. Prices of traditional safe-haven assets such as gold edged higher by 0.1 per cent to $3,372.36 per ounce, while the U.S. dollar firmed against the euro, the Australian and New Zealand dollars. CENTRAL BANK POLICY Overnight, the Federal Reserve delivered some mixed signals to markets. Much to Trump's displeasure, policymakers held rates steady as expected and retained projections for two quarter-point rate cuts this year. However, Fed Chair Jerome Powell struck a cautious note about further easing ahead, saying at his press conference later that he expects "meaningful" inflation ahead as a result of Trump's aggressive trade tariffs. Strategists at MUFG said the Fed "is underestimating the weakness in the economy that was present before the tariff shock, specifically, almost ignoring the cracks that have been visible in the labor market for years." "We maintain our view that the longer they wait to ease, the more they may need to do." Markets will now look to a string of central bank policy decisions out of Europe for any possible catalysts. In Britain, despite Wednesday's report showing inflation cooled as expected last month, the Bank of England is widely expected to keep interest rates steady as policymakers consider the potential energy price shock from the Israel-Iran conflict. Sterling was flat at $1.34 ahead of the decision. Central banks in Switzerland and Norway are both also anticipated to deliver policy decisions later in the day. In Japan, longer-dated Japanese government bond yields rose, while medium-term yields declined after Reuters reported that the government intends to cut sales of super-long bonds by about 10 per cent from the original plan.
Zawya
4 days ago
- Business
- Zawya
Asian stocks slip, gold gains with yen as Middle East conflict rages
TOKYO: Stock markets in Asia edged lower on Thursday while safe havens such as gold and the Japanese yen gained as investors remained on edge over the possible entry of the United States into the week-old Israel-Iran air war. President Donald Trump kept the world guessing about whether the United States will join Israel's bombardment of Iranian nuclear sites, telling reporters outside the White House on Thursday, "I may do it. I may not do it." The Wall Street Journal said Trump had told senior aides he approved attack plans on Iran but was holding off on giving the final order to see if Tehran would abandon its nuclear programme. Japan's Nikkei sank 0.8%, with additional downward pressure stemming from a stronger yen, which reduces the value of overseas revenues for the country's heavyweight exporters. Taiwan's stock benchmark slid 0.9%, and Hong Kong's Hang Seng declined 0.8%. U.S. S&P 500 futures pointed 0.4% lower, although most U.S. markets - including Wall Street and the Treasury market - are closed on Thursday for a national holiday. Gold advanced 0.3% to $3,378 per ounce. "Market participants remain edgy and uncertain," said Kyle Rodda, senior financial markets analyst at "Speculation remains rife – fed probably strategically by the Trump administration – that the U.S. will intervene, something that would mark a material escalation and could invite direct retaliation against the U.S. by Iran," he said. "Such a scenario would raise the risk of a greater regional conflict, with implications for global energy supply and probably economic growth." Brent crude edged down to $76.32 per barrel, but remained not far from the 4-1/2-month peak of $78.50 reached on Friday. The yen gained 0.2% to 144.92 per dollar, while the U.S. currency itself was also in demand as a haven, gaining 0.1% to $1.1472 per euro and 0.2% to $1.3398 versus sterling. The Swiss franc edged down 0.1% to 0.8193 per dollar. The Bank of England and Swiss National Bank both announce policy decisions later in the day, with the BOE widely expected to keep interest rates steady while the SNB is seen as likely to cut rates by 25 basis points. Overnight, the Federal Reserve delivered some mixed signals to markets. Policymakers held rates steady, as expected, and retained projections for two quarter-point rate cuts this year. However, Fed Chair Jerome Powell struck a cautious note about further easing ahead, saying at his press conference later that he expects "meaningful" inflation ahead as a result of Trump's aggressive trade tariffs.
Yahoo
4 days ago
- Business
- Yahoo
Asian stocks slip, gold gains with yen as Middle East conflict rages
By Kevin Buckland TOKYO (Reuters) -Stock markets in Asia edged lower on Thursday while safe havens such as gold and the Japanese yen gained as investors remained on edge over the possible entry of the United States into the week-old Israel-Iran air war. President Donald Trump kept the world guessing about whether the United States will join Israel's bombardment of Iranian nuclear sites, telling reporters outside the White House on Thursday, "I may do it. I may not do it." The Wall Street Journal said Trump had told senior aides he approved attack plans on Iran but was holding off on giving the final order to see if Tehran would abandon its nuclear programme. Japan's Nikkei sank 0.8%, with additional downward pressure stemming from a stronger yen, which reduces the value of overseas revenues for the country's heavyweight exporters. Taiwan's stock benchmark slid 0.9%, and Hong Kong's Hang Seng declined 0.8%. U.S. S&P 500 futures pointed 0.4% lower, although most U.S. markets - including Wall Street and the Treasury market - are closed on Thursday for a national holiday. Gold advanced 0.3% to $3,378 per ounce. "Market participants remain edgy and uncertain," said Kyle Rodda, senior financial markets analyst at "Speculation remains rife – fed probably strategically by the Trump administration – that the U.S. will intervene, something that would mark a material escalation and could invite direct retaliation against the U.S. by Iran," he said. "Such a scenario would raise the risk of a greater regional conflict, with implications for global energy supply and probably economic growth." Brent crude edged down to $76.32 per barrel, but remained not far from the 4-1/2-month peak of $78.50 reached on Friday. The yen gained 0.2% to 144.92 per dollar, while the U.S. currency itself was also in demand as a haven, gaining 0.1% to $1.1472 per euro and 0.2% to $1.3398 versus sterling. The Swiss franc edged down 0.1% to 0.8193 per dollar. The Bank of England and Swiss National Bank both announce policy decisions later in the day, with the BOE widely expected to keep interest rates steady while the SNB is seen as likely to cut rates by 25 basis points. Overnight, the Federal Reserve delivered some mixed signals to markets. Policymakers held rates steady, as expected, and retained projections for two quarter-point rate cuts this year. However, Fed Chair Jerome Powell struck a cautious note about further easing ahead, saying at his press conference later that he expects "meaningful" inflation ahead as a result of Trump's aggressive trade tariffs. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
