Latest news with #S&P500
Perth Now
an hour ago
- Business
- Perth Now
Stocks struggle, oil up as Trump weighs US move on Iran
Share markets in Asia struggled for direction as fears of a potential US attack on Iran hung over markets, while oil prices were poised to rise for a third straight week on the escalating Israel-Iran conflict. 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 US will get involved in the Israel-Iran war. The US President is facing uproar from some of his MAGA base over a possible strike on Iran. Brent fell 2 per cent on Friday to $77.22 per barrel, but is still headed for a strong weekly gain of 4 per cent, following a 12 per cent 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." Still, a cautious mood prevailed in markets with Nasdaq futures and S&P 500 futures both 0.3 per cent lower in Asia. US 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 per cent but was set for a weekly drop of 1 per cent. Japan's Nikkei slipped 0.2 per cent. China's blue chips rose 0.3 per cent, while Hong Kong's Hang Seng gained 0.5 per cent, 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 per cent 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. Investors, however, see little prospects of a rate hike from the BOJ until December this year, which is a little over 50 per cent priced in. The US 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 per cent, while two-year yields slipped 2 basis points to 3.925 per cent. 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 per cent to $3,363 an ounce, but were set for a weekly loss of 2 per cent.
Free Malaysia Today
3 hours ago
- Business
- Free Malaysia Today
Stocks tumble, dollar up as Middle East war lights safe-haven trade
In Europe, stocks fell for a third day, leaving the STOXX 600 down nearly 2.5% on the week. (AFP pic) TOKYO : Global stocks fell and the US dollar rose today, reflecting investors' preference for perceived safe-havens as concernsmounted over possible US 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 US would join Israel's bombardment of Iranian nuclear sites, telling reporters outside the White House today; '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, stocks fell for a third day, leaving the STOXX 600 down nearly 2.5% on the week, set for its biggest week-on-week decline since the tariff-induced turmoil of April. US S&P 500 futures fell 0.5%, although most US markets – including Wall Street and the Treasury market – will be closed today for a public holiday. 'Market participants remain edgy and uncertain,' said Kyle Rodda, senior financial markets analyst at Speculation was rife 'that the US will intervene, something that would mark a material escalation and could invite direct retaliation against the US 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,' Rodda said. 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 rose by as much as nearly 1% to US$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 US$3,372 an ounce, up 0.1% on the day. The dollar itself rose broadly, leaving the euro down 0.1% at US$1.1466 and the Australian and New Zealand dollars – both risk-linked currencies – down 0.7% and 1%, respectively. Central bank policy Overnight, the Federal Reserve (Fed) delivered 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 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 labour market for years'. 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 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 US$1,300 an ounce, driven partly by what analysts said was consumers seeking a cheaper alternative to gold.
Time of India
3 hours ago
- Business
- Time of India
US futures pare losses as Trump weighs Iran role
US equity futures moderated declines as President Donald Trump weighs whether to back Israel militarily in its conflict with Iran. Contracts for the S&P 500 were down around 0.3% from Wednesday's close in early Asia hours, compared with a 0.9% drop on Thursday when US markets were closed for the Juneteenth holiday. Shares in Japan and Australia held to tight ranges. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Average Cost To Rent A Private Jet May Surprise You (View Prices) Private Jet I Search Ads Learn More Undo While traders were offered some short-term clarity as the White House said Trump will decide within two weeks whether to strike Iran, the remarks did little to resolve broader uncertainty around potential US involvement and the risk of renewed energy-driven inflation. 'If the US does strike, you're going to see a big knee-jerk reaction,' said Neil Wilson, investor strategist at Saxo UK. 'No one will be wanting to make big long bets.' Brent crude fell around 2% Friday to moderate gains from earlier in the week. Treasuries were steady while the dollar weakened. The yen strengthened to around 145 per dollar. Live Events Traders' sentiment turned more cautious following a Bloomberg report that senior US officials are preparing for a possible strike on Iran in the coming days. Markets were already on edge after the Federal Reserve downgraded its estimates for growth this year and projected higher inflation. Israel struck more of Iran's nuclear sites on Thursday and warned its attacks could bring down Tehran's leadership as both sides awaited a decision from Trump on whether to join the offensive. Some extreme scenarios resulting from increased US involvement in the Israel-Iran war could push oil prices as high as $130 to $150 a barrel, particularly if Iran retaliates in a major way, said Jennifer McKeown, chief global economist at Capital Economics Ltd. Such a development would pause further policy easing by central banks, she said. 'Even though central banks would like to think that would be a temporary impact, I think it would be a brave central bank that would cut interest rates,' McKeown said on Bloomberg TV. Brent futures have been pricing in a geopolitical premium of about $8 a barrel since Israel and Iran began attacking each other last week, according to a survey of analysts and traders. US intervention in the conflict would bolster that further, but exactly how much would depend on the nature of the involvement, the nine respondents said. In Thailand, the political fate of Prime Minister Paetongtarn Shinawatra remained uncertain after mounting opposition calls and street protests for her to resign following a leaked phone call in which she criticized her army. Elsewhere in Asia, data set for release Friday include 1-year and 5-year Loan Prime Rates in China, inflation in Japan, and foreign exchange reserves in India. Markets are closed in New Zealand. Japan's Finance Ministry will seek feedback from market players later Friday over its planned reductions to super-long bond issuance as it takes steps to quell market turbulence.
Economic Times
3 hours ago
- Business
- Economic Times
US futures pare losses as Trump weighs Iran role
US equity futures moderated declines as President Donald Trump weighs whether to back Israel militarily in its conflict with Iran. ADVERTISEMENT Contracts for the S&P 500 were down around 0.3% from Wednesday's close in early Asia hours, compared with a 0.9% drop on Thursday when US markets were closed for the Juneteenth holiday. Shares in Japan and Australia held to tight ranges. While traders were offered some short-term clarity as the White House said Trump will decide within two weeks whether to strike Iran, the remarks did little to resolve broader uncertainty around potential US involvement and the risk of renewed energy-driven inflation. 'If the US does strike, you're going to see a big knee-jerk reaction,' said Neil Wilson, investor strategist at Saxo UK. 'No one will be wanting to make big long bets.'Brent crude fell around 2% Friday to moderate gains from earlier in the week. Treasuries were steady while the dollar weakened. The yen strengthened to around 145 per sentiment turned more cautious following a Bloomberg report that senior US officials are preparing for a possible strike on Iran in the coming days. Markets were already on edge after the Federal Reserve downgraded its estimates for growth this year and projected higher inflation. ADVERTISEMENT Israel struck more of Iran's nuclear sites on Thursday and warned its attacks could bring down Tehran's leadership as both sides awaited a decision from Trump on whether to join the extreme scenarios resulting from increased US involvement in the Israel-Iran war could push oil prices as high as $130 to $150 a barrel, particularly if Iran retaliates in a major way, said Jennifer McKeown, chief global economist at Capital Economics Ltd. Such a development would pause further policy easing by central banks, she said. ADVERTISEMENT 'Even though central banks would like to think that would be a temporary impact, I think it would be a brave central bank that would cut interest rates,' McKeown said on Bloomberg futures have been pricing in a geopolitical premium of about $8 a barrel since Israel and Iran began attacking each other last week, according to a survey of analysts and traders. US intervention in the conflict would bolster that further, but exactly how much would depend on the nature of the involvement, the nine respondents said. ADVERTISEMENT In Thailand, the political fate of Prime Minister Paetongtarn Shinawatra remained uncertain after mounting opposition calls and street protests for her to resign following a leaked phone call in which she criticized her in Asia, data set for release Friday include 1-year and 5-year Loan Prime Rates in China, inflation in Japan, and foreign exchange reserves in India. Markets are closed in New Zealand. Japan's Finance Ministry will seek feedback from market players later Friday over its planned reductions to super-long bond issuance as it takes steps to quell market turbulence. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Yahoo
5 hours ago
- Business
- Yahoo
3 Reasons FRME is Risky and 1 Stock to Buy Instead
Over the past six months, First Merchants's stock price fell to $35.72. Shareholders have lost 11.5% of their capital, which is disappointing considering the S&P 500 has climbed by 1.9%. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in First Merchants, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free. Despite the more favorable entry price, we don't have much confidence in First Merchants. Here are three reasons why FRME doesn't excite us and a stock we'd rather own. We at StockStory place the most emphasis on long-term growth, but within financials, a stretched historical view may miss recent interest rate changes, market returns, and industry trends. First Merchants's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 2% over the last two years. Net interest margin represents how much a bank earns in relation to its outstanding loans. It's one of the most important metrics to track because it shows how a bank's loans are performing and whether it has the ability to command higher premiums for its services. Over the past two years, First Merchants's net interest margin averaged 3.2%. Its margin also contracted by 26.7 basis points (100 basis points = 1 percentage point) over that period. This decline was a headwind for its net interest income. While prevailing rates are a major determinant of net interest margin changes over time, the decline could mean First Merchants either faced competition for loans and deposits or experienced a negative mix shift in its balance sheet composition. Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. First Merchants's EPS grew at an unimpressive 1.9% compounded annual growth rate over the last five years, lower than its 7% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded. First Merchants isn't a terrible business, but it doesn't pass our bar. Following the recent decline, the stock trades at 0.8× forward P/B (or $35.72 per share). Beauty is in the eye of the beholder, but we don't really see a big opportunity at the moment. We're pretty confident there are more exciting stocks to buy at the moment. We'd suggest looking at a fast-growing restaurant franchise with an A+ ranch dressing sauce. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
