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eNCA
4 days ago
- Business
- eNCA
Oil prices drop following Trump's Iran comments, US stocks rise
Oil prices dropped Wednesday as comments by President Donald Trump trimmed concerns about an imminent US intervention in the Israel-Iran conflict. Meanwhile, Wall Street's main indices advanced in late morning trading as investors also awaited the Federal Reserve rate decision, although they were mixed elsewhere. Oil prices initially rose after Iran's supreme leader Ali Khamenei rejected US President Donald Trump's demand for an "unconditional surrender", adding to sharp gains made the previous day. Six days into the conflict, Khamenei warned the United States would face "irreparable damage" if it intervenes in support of Israel. But oil prices then fell after Trump spoke later and indicated he was still considering whether the United States would join Israeli strikes and indicated that Iran had reached out to seek negotiations. "For now at least, the US is not getting involved, if one can believe Trump," said City Index and analyst Fawad Razaqzada. Despite heightened tensions, "there has been no sense of panic from investors", said David Morrison, market analyst at financial services firm Trade Nation. "As far as the US is concerned, events are taking place a long way from home," he said. "But there's also a feeling that investors are betting on a short and sharp engagement, resulting in a more stable position across the Middle East than the one that currently exists." Of particular concern, however, is the possibility of Iran shutting off the Strait of Hormuz, through which around one fifth of global oil supply is transported. In Europe, the London stock market rose but Paris and Frankfurt ended the day down. Asian equities closed mixed as well. - Fed watch - The Federal Reserve is widely expected to hold interest rates steady on Wednesday, as officials gauge the impact of US tariffs on inflation. The central bank has ignored calls from Trump to cut borrowing costs as the world's biggest economy faces pressure. Trump again publicly berated Fed chief Jerome Powell on Wednesday, calling him a "stupid person" for not cutting interest rates. The Federal Reserve will also release on Wednesday its rate and economic growth outlook for the rest of the year, which are expected to take account of Trump's tariff war. Weak US retail sales and factory output data on Tuesday rekindled worries about the impact of tariffs on the economy but also provided hope that the Fed would still cut rates this year. "The Fed would no doubt be cutting again by now if not for the uncertainty regarding tariffs and a recent escalation of tensions in the Middle East," said KPMG senior economist Benjamin Shoesmith. In a busy week for monetary policy, Sweden's central bank cut its key interest rate on Wednesday to try and boost the country's economy, as it cited risks linked to trade tensions and the escalating conflict in the Middle East. The Bank of England is expected to keep its key rate steady Thursday, especially after official data Wednesday showed UK annual inflation fell less than expected in May. The Bank of Japan on Tuesday kept interest rates unchanged and said it would taper its purchase of government bonds at a slower pace, as trade uncertainty threatens to weigh on the world's number four economy. - Key figures at around 1530 GMT - Brent North Sea Crude: DOWN 2.0 percent at $74.93 per barrel West Texas Intermediate: DOWN 2.0 percent at $71.82 per barrel New York - Dow: UP 0.5 percent at 42,411.50 points New York - S&P 500: UP 0.4 percent at 6,007.85 New York - Nasdaq Composite: UP 0.5 percent at 19,624.09 London - FTSE 100: UP 0.1 at 8,843.47 (close) Paris - CAC 40: DOWN 0.4 percent at 7,656.12 (close) Frankfurt - DAX: DOWN 0.5 percent at 23,317.81 (close) Tokyo - Nikkei 225: UP 0.9 percent at 38,885.15 (close) Hong Kong - Hang Seng Index: DOWN 1.1 percent at 23,710.69 (close) Shanghai - Composite: FLAT at 3,388.81 (close) Euro/dollar: UP at $1.1530 from $1.1488 on Tuesday Pound/dollar: UP at $1.3471 from $1.3425 Dollar/yen: DOWN at 144.59 yen from 145.27 yen
Wall Street Journal
6 days ago
- Business
- Wall Street Journal
Gold Edges Higher Amid Ongoing Geopolitical Tensions
2341 GMT — Gold edges higher in the early Asian session amid ongoing geopolitical tensions that typically enhance the safe-haven appeal of the precious metal. Israel struck buildings belonging to an Iranian state-owned media company in Tehran. The attacks came despite messages passed by Tehran via intermediaries seeking a return to nuclear talks if the U.S. stays out of the conflict. 'The geopolitical backdrop remains highly combustible,' says Fawad Razaqzada, market analyst at City Index and in an email. 'The Israeli strikes on Iran have injected a clear risk premium across commodities,' the analyst adds. Spot gold is 0.3% higher at $3,396.27/oz. (
Wall Street Journal
16-06-2025
- Business
- Wall Street Journal
Gold Edges Higher Amid Likely Safe-Haven Demand
2350 GMT — Gold edges higher in early Asian trade amid likely safe-haven demand spurred by ongoing geopolitical tensions. Israel and Iran ramped up their aerial attacks early Sunday, while President Trump has suggested that 'it's possible' the U.S. could get involved in the conflict. Gold has been rallying on safe haven flows, says Fawad Razaqzada, market analyst at City Index and in an email. 'There is little doubt about the gold outlook which remains positive,' amid factors including increased geopolitical risks in the Middle East, Razaqzada adds. Spot gold is 0.3% higher at $3,444.61/oz. ( 2231 GMT — The spot gold price ended last week at a record closing high and will look to build on this in the Asian trading day, says Chris Weston, head of research at Pepperstone. It could test the all-time-high of $3,500.10 per troy ounce, he says. Traders have cut back on profitable longs in silver, platinum and palladium, potentially to raise cash in their portfolios or even flipping the exposure into gold, he adds. ( @JamesGlynnWSJ)
Zawya
13-06-2025
- Business
- Zawya
Dollar jumps as Israel strikes on Iran rekindle safe-haven appeal
LONDON - The dollar headed for its biggest one-day rise in a month on Friday, as investors rushed back into the currency in their search for safe-haven assets, including gold, after Israel launched strikes against Iran, sparking Iranian retaliation. Israel said it targeted a wide range of military targets in Iran, in response to which Iran launched a barrage of drones. U.S. and Iranian officials were due to hold a sixth round of talks in Oman on Sunday on Tehran's uranium enrichment programme. Israel's ambassador to the United Nations said the government's determination to strike Iranian targets was an independent decision. Initially, the Swiss franc and Japanese yen rallied, before ceding ground to the dollar, which until recently, has always been the ultimate safe-haven in times of geopolitical or financial turmoil. U.S. President Donald Trump urged Iran to reach a deal, "with the next already planned attacks being even more brutal," he said in a social media post. Against a basket of major currencies, the dollar rose by nearly 0.9%, as losses mounted for the euro, sterling and the Australian dollar in particular. The dollar index was last up 0.85%, heading for its largest one-day rise since May 12. "The dollar is reverting to that traditional role of safe haven, which we haven't seen for months," City Index strategist Fiona Cincotta said. "This is headlines driving this. And I think, obviously, we've got the Federal Reserve interest rate decision next week, so the boost may well be short-lived if we see escalations calm down over the weekend," she said. The euro broke a four-day rally to trade down 0.7% at $1.1494, but still within sight of Thursday's near-four-year high of $1.163225. Against the yen, the dollar rose 0.6% to 144.43, having touched an overnight low of 142.795 before recovering, while against the Swiss franc, it also rose 0.52% to 0.8147 francs. Investors also snapped up U.S. Treasury bonds, sending the yield on the benchmark 10-year note down as much as 4.7 basis points at one point to a more-than-one-month low of 4.31%. Gold prices jumped as much as 1.7% to $3,444 an ounce, their strongest since early May. DOLLAR SET FOR WEEKLY LOSS Friday's developments created more uncertainty for investors navigating a broad range of concerns about the outlook for global trade and inflation. Even with Friday's gains, the dollar index was trading close to its lowest level since March 2022, which it hit earlier this week, after a U.S.-China trade truce offered little clarity and Trump said he would outline unilateral terms of trade with other economies in the days to come. The index is on track for a weekly decline of nearly 1%, its biggest drop in more than three weeks, and is set for losses against the yen, the Swiss franc and the euro. "Geopolitical noise may temporarily distort the dollar downtrend and temporarily weigh on risk proxies especially heading into the weekend," said Christopher Wong, a currency strategist at OCBC. Two inflation reports this week showed price pressures were contained, fuelling expectations of more aggressive interest rate cuts by the U.S. Federal Reserve. But tariffs could filter into prices in the coming months, analysts warned. Following Israeli strikes, crude prices jumped more than $5 a barrel on fears of supply disruptions in the oil-rich region, which could also filter into consumer inflation. Later on Friday, investors will assess the University of Michigan's preliminary survey out of the U.S. for a look at how consumers have fared this month. Decisions from the Fed, the Bank of Japan and the Bank of England are expected next week that could offer investors more clarity on the path ahead for interest rates. The risk-off mood also hit cryptocurrencies on Friday. Bitcoin eased 1% to $105,052, while ether prices declined 4% to $2,538.
Yahoo
13-06-2025
- Business
- Yahoo
Stocks sell off, oil surges as Israel strikes Iran
(Corrects to show oil prices rose, not fell, in headline) SINGAPORE (Reuters) -Israel said early on Friday that it struck Iran, and Iranian media said explosions were heard in Tehran as tensions mounted over U.S. efforts to win Iran's agreement to halt production of material for an atomic bomb. Two U.S. officials who spoke on condition of anonymity said there was no U.S. assistance or involvement in the operation. MARKET REACTION: U.S. stock futures fell more than 1%, oil prices jumped and U.S. Treasuries rose. The U.S. dollar, Japanese yen and Swiss franc rallied. QUOTES: MATT SIMPSON, SENIOR MARKET ANALYST, CITY INDEX, BRISBANE: "A surge of one-way volatility to the demise of risk appetite is playing out on reports of Israel's strike on Iran, with traders pushing the yen, Swiss franc and gold higher while global index futures point lower. "Oil prices surged 6% in minutes on supply concerns, taking its 3-day total to 12.3%. This could keep volatility elevated heading into the weekend, with traders likely wanting to hedge gap risks for next week." JESSICA AMIR, MARKET STRATEGIST, ONLINE TRADING PLATFORM MOOMOO, SYDNEY: 'We've seen equities stalling for some time, and it just appears that this is the catalyst that will probably send equities down lower. Stocks are up 30% globally, and you've got the MSCI World Index at a record, so there's room for fat to be taken off the table. 'What's going to continue to soar higher is, obviously, the defensive sectors, so utilities, energy, and also defence (companies) themselves. 'The (Middle East) region is a huge supplier of oil and obviously there's now the thinking that some of that supply could be cut off at a time when we've got demand really starting to pick up.' HIROFUMI SUZUKI, CHIEF FX STRATEGIST, SMBC, TOKYO: "The situation in the Middle East has further deteriorated, and the heightened geopolitical risks are being strongly felt in the FX market. With the rise in risk-off sentiment, the Japanese yen is likely to be bought. The USD/JPY exchange rate is seeing the 140 yen level, observed in April, as a potential support level." TONY SYCAMORE, ANALYST, IG, SYDNEY: "I thought Israel might give Iran the benefit of the doubt ahead of weekend talks with the U.S., but they've obviously decided to go it alone. "While details are sparse regarding the targets, risk asset markets are not in the mood to wait and find out. "This morning's alarming escalation is a blow to risk sentiment and comes at a crucial time after macro and systematic funds have rebuilt long positions and investor sentiment has rebounded to bullish levels. While we await further news and a potential response from Iran, we are likely to see a further deterioration in risk sentiment as traders cut risk seeking positions ahead of the weekend." KARL SCHAMOTTA, CHIEF MARKET STRATEGIST, CORPAY, TORONTO: "Traders are scurrying for safety as reports of a strike on Iran cross the wires, but details on the scale and magnitude of the attack remain scarce and moves have been relatively limited thus far." CHARU CHANANA, CHIEF INVESTMENT STRATEGIST, SAXO, SINGAPORE: "The geopolitical escalation adds another layer of uncertainty to already fragile sentiment. "The key question now is whether this marks a brief flare-up or the beginning of broader regional escalation. If the situation de-escalates quickly, markets may retrace some of the initial moves. But if tensions rise — particularly with any threat to oil supply routes — the risk-off mood could persist, keeping upward pressure on crude and haven assets." 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
