Latest news with #STOXX600
Free Malaysia Today
5 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.
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
14 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.
The Advertiser
19 hours ago
- Business
- The Advertiser
Stocks tumble, safe havens gain as Mideast war flares
Global stocks have fallen and the dollar has risen as investors, concerned over the United States' possible entry into the Israel-Iran air war, seek safe-haven assets and ditch 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 on Thursday, 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. US S&P 500 futures fell 0.6 per cent, although most US 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 US will intervene, something that would mark a material escalation and could invite direct retaliation against the US 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 one per cent to $US77.40 a barrel, close to its highest since January. Gold, which tends to struggle when the dollar gains, pared earlier losses to trade at $US3,366 an ounce. The dollar itself rose broadly, leaving the euro down 0.1 per cent at $US1.1466 and the Australian and New Zealand dollars - both risk-linked currencies - down 0.7 per cent and one per cent, respectively. 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 media conference later that he expected "meaningful" inflation ahead as a result of Trump's aggressive trade tariffs. 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 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 in May, 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 $US1.341. Global stocks have fallen and the dollar has risen as investors, concerned over the United States' possible entry into the Israel-Iran air war, seek safe-haven assets and ditch 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 on Thursday, 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. US S&P 500 futures fell 0.6 per cent, although most US 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 US will intervene, something that would mark a material escalation and could invite direct retaliation against the US 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 one per cent to $US77.40 a barrel, close to its highest since January. Gold, which tends to struggle when the dollar gains, pared earlier losses to trade at $US3,366 an ounce. The dollar itself rose broadly, leaving the euro down 0.1 per cent at $US1.1466 and the Australian and New Zealand dollars - both risk-linked currencies - down 0.7 per cent and one per cent, respectively. 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 media conference later that he expected "meaningful" inflation ahead as a result of Trump's aggressive trade tariffs. 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 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 in May, 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 $US1.341. Global stocks have fallen and the dollar has risen as investors, concerned over the United States' possible entry into the Israel-Iran air war, seek safe-haven assets and ditch 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 on Thursday, 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. US S&P 500 futures fell 0.6 per cent, although most US 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 US will intervene, something that would mark a material escalation and could invite direct retaliation against the US 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 one per cent to $US77.40 a barrel, close to its highest since January. Gold, which tends to struggle when the dollar gains, pared earlier losses to trade at $US3,366 an ounce. The dollar itself rose broadly, leaving the euro down 0.1 per cent at $US1.1466 and the Australian and New Zealand dollars - both risk-linked currencies - down 0.7 per cent and one per cent, respectively. 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 media conference later that he expected "meaningful" inflation ahead as a result of Trump's aggressive trade tariffs. 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 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 in May, 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 $US1.341. Global stocks have fallen and the dollar has risen as investors, concerned over the United States' possible entry into the Israel-Iran air war, seek safe-haven assets and ditch 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 on Thursday, 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. US S&P 500 futures fell 0.6 per cent, although most US 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 US will intervene, something that would mark a material escalation and could invite direct retaliation against the US 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 one per cent to $US77.40 a barrel, close to its highest since January. Gold, which tends to struggle when the dollar gains, pared earlier losses to trade at $US3,366 an ounce. The dollar itself rose broadly, leaving the euro down 0.1 per cent at $US1.1466 and the Australian and New Zealand dollars - both risk-linked currencies - down 0.7 per cent and one per cent, respectively. 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 media conference later that he expected "meaningful" inflation ahead as a result of Trump's aggressive trade tariffs. 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 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 in May, 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 $US1.341.
