Latest news with #MSCI
Time of India
2 hours ago
- Business
- Time of India
Oil tumbles, stocks rebound after Trump Middle east pause
Stock markets ticked higher on Friday while oil skirted close to its biggest daily drop since April after President Donald Trump pushed back a decision on US military involvement in the Israel-Iran conflict. Rising risks from the Middle East have loomed large on the world's top indexes again this week. Europe's main bourses all rose between 0.5 per cent-1 per cent after similar gains across Asia, although it was touch and go whether it would be enough to prevent a second straight weekly loss for MSCI's main world index. Israel bombed targets in Iran, and Iran fired missiles at Israel overnight as the week-old war continued although Friday's markets moves, which also included a modest drop in the dollar, showed an element of relief. That was largely pinned on Thursday's statement from the White House that Trump will decide in the next two weeks - rather than right away - whether the US will get involved in the war. European foreign ministers were to meet their Iranian counterpart in Geneva on Friday, seeking a path back to diplomacy over its contested nuclear programme. The relief the US wasn't charging into the conflict sent oil prices down as low as $76.10 per barrel, although they were last at just over $77 and still up 4 per cent for the week and 20 per cent for the month. " Brent crude is down 2.5 per cent today in the clearest sign that fears over an imminent escalation in the Israel/Iran conflict have eased," MUFG strategist Derek Halpenny said. Gold, another traditional safe-haven play for traders, was also lower on the day although Nasdaq, S&P 500 , and Dow futures were all in the red after US markets had been closed on Thursday. Asian shares had gained 0.5 per cent overnight thanks to a 1.2 per cent jump in Hong Kong's Hang Seng and as newly elected President Lee Jae Myung's stimulus plans saw South Korea's Kospi top 3,000 points for the first time since early 2022. China's central bank held its benchmark lending rates steady as widely expected in Beijing, while data from Japan showed core inflation there hit a two-year high in May, keeping pressure on the Bank of Japan to resume interest rate hikes. That in turn lifted the yen and pushed down the export-heavy Nikkei in Tokyo. Oil retreats The dollar was ending an otherwise positive week lower on the day, with the euro up 0.3 per cent against the US currency at $1.1527 and the pound 0.2 per cent higher at $1.3494. The US bond market, which was also closed on Thursday, resumed trading with the key 10-year Treasury bond yield flat at 4.39 per cent, while German 10-year yields , which serve as Europe's borrowing benchmark rate, fell 2.5 basis points to 2.49 per cent. Gold prices eased 0.5 per cent to $3,354 an ounce, but were set for a weekly loss of 2.3 per cent. But the main commodity market focus remained oil. Brent crude futures were last down $1.60, or around 2.2 per cent, at $77.28 a barrel in London although they were still on track to end the week 4 per cent higher. PVM analyst John Evans said the big market risk of the Middle East troubles was "unintended action that escalates the conflict and touches upon oil infrastructure". "The world has more than adequate supply for 2025, but not if the nightmare scenario of 20 million (barrels per day) being blocked in the seas of Arabia, however briefly that might be," he said.
Bloomberg
4 hours ago
- Business
- Bloomberg
MSCI Says it Needs More Time to Assess Nigeria's Forex Reforms
MSCI Inc. said it needs more time to assess the impact of foreign exchange reforms in Nigeria, suggesting the global index provider is not yet ready to restore the West African's country's frontier-market status. Operational modifications in Nigeria's foreign exchange market have improved liquidity, but 'more time is needed to assess the impact of these changes,' MSCI said in its annual market accessibility review.
Bloomberg
4 hours ago
- Business
- Bloomberg
World Waiting to See If US Joins Iran Attacks Leaves Markets Uneasy
It's been just a week since Israel first attacked Iran, roiling global markets. Now investors are faced with guessing whether the US will join forces with Israel against Iran, and what the repercussions might be. The result is uneasy trading, with the MSCI All-Country World Index of stocks little changed for the week and a gauge of the dollar's strength heading for its best week since February. Crude is 3.5% higher, following last week's 12% surge, although oil dropped on Friday amid speculation any US attacks aren't imminent.
Economic Times
8 hours ago
- Business
- Economic Times
Stocks struggle, oil up for 3rd week as Trump weighs US action on Iran
Share markets in Asia struggled for direction on Friday as fears of a potential U.S. attack on Iran hung over markets, while oil prices were poised to rise for a third straight week on the escalating Israel-Iran conflict. ADVERTISEMENT Overnight, Israel bombed nuclear targets in Iran, and Iran fired missiles and drones at Israel as a week-old air war intensified with no sign yet of an exit strategy from either side. The White House said President Donald Trump will decide in the next two weeks whether the U.S. will get involved in the Israel-Iran war. The U.S. President is facing uproar from some of his MAGA base over a possible strike on Iran. Brent fell 2% on Friday to $77.22 per barrel, but is still headed for a strong weekly gain of 4%, following a 12% surge the previous week. "The 'two-week deadline' is a tactic Trump has used in other key decisions, including those involving Russia and Ukraine, and tariffs," said Tony Sycamore, analyst at IG. "Often, these deadlines expire without concrete action, (similar to TACO), and there is certainly a risk of this happening again, given the complexities of the situation." ADVERTISEMENT Still, a cautious mood prevailed in markets with Nasdaq futures and S&P 500 futures both 0.3% lower in Asia. U.S. markets were closed for the Juneteenth holiday, offering little direction for Asia. The MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1% but was set for a weekly drop of 1%. Japan's Nikkei slipped 0.2%. ADVERTISEMENT China's blue chips rose 0.3%, while Hong Kong's Hang Seng gained 0.5%, after the central bank held the benchmark lending rates steady as widely expected. In the currency markets, the dollar was on the back foot again, slipping 0.2% to 145.17 yen after data showed Japan's core inflation hit a two-year high in May, which kept pressure on the Bank of Japan to resume interest rate hikes. ADVERTISEMENT Investors, however, see little prospects of a rate hike from the BOJ until December this year, which is a little over 50% priced in. The U.S. bond market, which was also closed on Thursday, started trading in Asian hours on a subdued note. Ten-year Treasury bond yield was flat at 4.389%, while two-year yields slipped 2 basis points to 3.925%. ADVERTISEMENT Overnight, the Swiss National Bank cut rates to zero and did not rule out going negative, while the Bank of England held policy steady but saw the need for further easing and Norway's central bank surprised everyone and cut rates for the first time since 2020. Gold prices eased 0.2% to $3,363 an ounce, but were set for a weekly loss of 2%. (You can now subscribe to our ETMarkets WhatsApp channel)
Korea Herald
9 hours ago
- Business
- Korea Herald
MSCI sees limited progress in Korea's market accessibility
Lagging FX liberalization, scarce English disclosures dampen Korea's prospects for developed market status Korea's investment barriers for foreign investors remain in place despite recent foreign exchange market reforms, Morgan Stanley Capital International said Friday, casting doubt on the country's prospects for an upgrade in MSCI's index system. In its 2025 Global Market Accessibility Review, released ahead of next week's annual market reclassification announcement, MSCI acknowledged that Korea has implemented 'a series of foreign exchange market reforms,' including allowing global financial institutions to participate in the onshore interbank forex market and extending trading hours to 2:00 a.m. to better align with global time zones. 'Despite these reforms, the registration process continues to face operational hurdles. Moreover, the limited usage of omnibus accounts and over-the-counter transactions has constrained the impact of related regulatory initiatives,' MSCI said. The Korean stock market received a minus rating, indicating improvement is required, in six of the 18 assessment categories, down from seven last year. The decline reflects an upgrade in short-selling accessibility, which was raised to plus following the March 2025 resumption of short-selling activity. 'The ban on short selling was lifted for all Korean-listed securities. MSCI will continue to monitor developments to assess the stability of the regulations over time,' the index provider said. Despite progress, MSCI noted that key hurdles remain in areas such as foreign exchange liberalization, investor registration and account setup, clearing and settlement systems, and the availability of investment products. The firm also pointed out persistent shortcomings in corporate disclosure practices. 'Company-related information is not always readily available in English,' it said, referencing the ongoing phased rollout of mandatory English-language disclosures initiated in 2023. Korea remains classified in the MSCI Emerging Markets Index. To be upgraded to Developed Market status, a country must first be placed on MSCI's watch list for at least one year. Market optimism had grown that Korea might be added to the watch list this year, fueled by a more than 20 percent rally in the Kospi, driven by a retail buying surge and the new administration's push for shareholder-friendly reforms. But MSCI's latest review has tempered those expectations. Goldman Sachs projected that if Korea is added to the watch list, it could be upgraded to Developed Market status by 2026, potentially attracting around $30 billion in capital inflows. 'Inclusion on the watch list seems to be challenging this time,' said Seo Sang-young, a researcher at Mirae Asset Securities. 'What matters more than early inclusion is ensuring the Korean market is prepared and attractive through strong corporate fundamentals and improved accessibility to draw greater capital inflows from global investors.'
