Latest news with #VivekDhar
The Guardian
8 hours ago
- Business
- The Guardian
Petrol prices could rise to $2 a litre in Australia amid Middle East conflict, analysts warn
Australian motorists could be paying $2 a litre for petrol in coming weeks, after US military strikes on Iranian nuclear facilities triggered a lift in oil prices on Monday. As the IMF warned that turmoil in international energy markets posed a threat to global growth, analysts said higher fuel and power costs would be another blow to households still struggling with the high cost of living. The prospect of higher energy prices may also delay the next Reserve Bank rate cut to August instead of July, economists said. The international oil benchmark, Brent crude, briefly climbed above $US80 a barrel early on Monday morning compared with Friday's close of just over $US77, before easing to $US78.12 in late afternoon trade. Sign up for Guardian Australia's breaking news email Oil has jumped by more than 20% in June, or by about $US14 a barrel, as tensions have ratcheted higher since Israel's earlier wave of strikes on Iran. Iran's Press TV reported at the weekend that the Iranian parliament approved a measure to close the strait of Hormuz, a narrow strip of water through which about a fifth of the world's oil supply passes. Fears of more severe disruptions to global oil supplies were only heightened when Bloomberg reported that two oil supertankers approaching the strait had performed abrupt U-turns after news of the US strikes emerged. But CBA energy analyst, Vivek Dhar, said it was more likely that Iran would adopt more 'symbolic' measures that allow room for deescalation with Israel and a return of oil prices to between $US60 and $US65 . Still, Dhar said it was possible that Iran could choose to disrupt shipping through the strait of Hormuz via missile and drone attacks. If that were to happen, oil prices could push to $US100 a barrel, with major consequences for the global economy. 'Right now, Brent oil at about $US80 is caught between those two polarising outcomes,' he said. Closer to home, Dhar estimated that oil at current levels of $US75 to 80 barrel, if maintained, already suggested prices at the pump would climb $1.90 to $2 a litre, from $1.75 a litre on average last week. And at $US100, motorists could be facing unprecedented unleaded fuel prices of between $2.30 and $2.40. AMP chief economist, Shane Oliver, estimated that oil prices of $US100 would translate to a lower $2.13 a litre at the pump. Even that lower level would push the average Australian household's petrol bill to a historic $74.55 a week, or about $14 a week higher than now. 'The economy is already pretty sluggish, and having to fork out an extra $15 a week, or $780 a year, would start to be quite a drag on consumer spending,' Oliver said. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion Oliver said higher fuel and energy prices could add 0.3 percentage points to headline inflation - and potentially more in a worst-case scenario - which could add to the case for the Reserve Bank board to hold off on cutting rates when it next meets on 7-8 July. Even so, an August move remained on the cards, Oliver said. The chief economist at Barrenjoey Capital Partners, Jo Masters, agreed that a spike towards $US100 oil prices was 'plausible', and that the uncertainty triggered by Israel's attack on Iran was more reason for the RBA to wait until August to cut rates in order to assess the fall-out on inflation and growth. The managing director of the International Monetary Fund, Kristalina Georgieva, warned the turmoil in global energy markets could deliver another blow to a global economy already under pressure from Donald Trump's tariffs. Georgieva told Bloomberg the IMF was wary that 'there could be secondary and tertiary impacts' from oil market disruptions. 'Let's say there is more turbulence that goes into hitting growth prospects in large economies — then you have a trigger impact of downward revisions in prospects for global growth,' she said. Steve Miller, a market strategist at GSFM Funds Management, said he was a little surprised with the sanguine reaction in financial markets, as shown by only modest selling in sharemarkets and similarly modest buying in safe-haven assets, such as gold. 'The clear outcome from this is uncertainty, and we don't know what the shape of any Iranian retaliation looks like, but it could be serious,' Miller said. 'I wonder if the market's taken a view that Iran is essentially impotent, as that's not a view I would subscribe to.' He added: 'I think there could be quite severe economic consequences of this. The US is already flirting with a stagflation-like environment where inflation is at 3% and just 1.4% growth, and this could exacerbate that. If inflation gets out of the bottle and with the US deficit already at 6.5% of GDP and likely to grow - that's a very nasty cocktail for markets.'
The Star
9 hours ago
- Business
- The Star
Shares slip, oil rises as investors weigh Iran risks
SYDNEY: Shares slipped in Asia on Monday and oil prices briefly hit five-month highs as investors anxiously waited to see if Iran would retaliate against U.S. attacks on its nuclear sites, with resulting risks to global activity and inflation. Early moves were contained, with the dollar getting only a minor safe-haven bid and no sign of panic selling across markets. Oil prices were up around 2.8%, but off their initial peaks. Optimists were hoping Iran might back down now its nuclear ambitions had been curtailed, or even that regime change might bring a less hostile government to power there. "Markets may be responding not to the escalation itself, but to the perception that it could reduce longer-term uncertainty," said Charu Chanana, chief investment strategist at Saxo. "That said, any sign of Iranian retaliation or threat to the Strait of Hormuz could quickly shift sentiment and force markets to reprice geopolitical risk more aggressively." The Strait of Hormuz is only about 33 km (21 miles) wide at its narrowest point and sees around a quarter of global oil trade and 20% of liquefied natural gas supplies. Analysts at JPMorgan also cautioned that past episodes of regime change in the region typically resulted in oil prices spiking by as much as 76% and averaging a 30% rise over time. "Selective disruptions that scare off oil tankers make more sense than closing the Strait of Hormuz given Iran's oil exports would be shut down too," said Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia. "In a scenario where Iran selectively disrupts shipping through the Strait of Hormuz, we see Brent oil reaching at least $100/bbl." Goldman Sachs warned prices could temporarily touch $110 a barrel should the critical waterway be closed for a month. For now, Brent was up a relatively restrained 1.8% at $78.42 a barrel, while U.S. crude rose 1.9% to $75.26. Elsewhere in commodity markets, gold edged down 0.1% to $3,363 an ounce. KEEP CALM AND CARRY ON World share markets were proving resilient so far, with S&P 500 futures off a modest 0.3% and Nasdaq futures down 0.4%. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.0%, while Chinese blue chips dipped 0.2%. Japan's Nikkei eased 0.6%, though surveys showed manufacturing activity there returned to growth in June after nearly a year of contraction. EUROSTOXX 50 futures lost 0.4%, while FTSE futures fell 0.3% and DAX futures slipped 0.5%. Europe and Japan are heavily reliant on imported oil and LNG, whereas the United States is a net exporter. The dollar edged up 0.3% on the Japanese yen to 146.50 yen , while the euro dipped 0.2% to $1.1500. The dollar index firmed marginally to 98.958. There was also no sign of a rush to the traditional safety of Treasuries, with 10-year yields rising 2 basis points to 4.395%. Futures for Federal Reserve interest rates were a tick lower, likely reflecting concerns a sustained rise in oil prices would add to inflationary pressures at a time when tariffs were just being felt in U.S. prices. Markets are still pricing only a slim chance the Fed will cut at its next meeting on July 30, even after Fed Governor Christopher Waller broke ranks and argued for a July easing. Most other Fed members, including Chair Jerome Powell, have been more cautious on policy leading markets to wager a cut is far more likely in September. At least 15 Fed officials are speaking this week, and Powell faces two days of questions from lawmakers, which is certain to cover the potential impact of President Donald Trump's tariffs and the attack on Iran. The Middle East will be high on the agenda at a NATO leaders meeting at the Hague this week, where most members have agreed to commit to a sharp rise in defence spending. Among the economic data due are figures on U.S. core inflation and weekly jobless claims, along with early readings on June factory activity from across the globe. - Reuters
Irish Times
10 hours ago
- Business
- Irish Times
Global markets slip and oil prices rise as investors weigh US strikes on Iran
Shares slipped in Asia on Monday and oil prices briefly hit five-month highs as investors anxiously waited to see if Iran would retaliate against US attacks on its nuclear sites, with resulting risks to global activity and inflation. Early moves were contained, with the dollar getting only a minor safe-haven bid and no sign of panic selling across markets. Oil prices were up around 2.8 per cent, but off their initial peaks. Optimists were hoping Iran might back down now its nuclear ambitions had been curtailed, or even that regime change might bring a less hostile government to power there. 'Markets may be responding not to the escalation itself, but to the perception that it could reduce longer-term uncertainty,' said Charu Chanana, chief investment strategist at Saxo. READ MORE 'That said, any sign of Iranian retaliation or threat to the Strait of Hormuz could quickly shift sentiment and force markets to reprice geopolitical risk more aggressively.' The Strait of Hormuz is only about 33 km wide at its narrowest point and sees around a quarter of global oil trade and 20 per cent of liquefied natural gas supplies. Analysts at JPMorgan also cautioned that past episodes of regime change in the region typically resulted in oil prices spiking by as much as 76 per cent and averaging a 30 per cent rise over time. 'Selective disruptions that scare off oil tankers make more sense than closing the Strait of Hormuz given Iran's oil exports would be shut down too,' said Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia. 'In a scenario where Iran selectively disrupts shipping through the Strait of Hormuz, we see Brent oil reaching at least $100/bbl.' Goldman Sachs warned prices could temporarily touch $110 a barrel should the critical waterway be closed for a month. For now, Brent was up a relatively restrained 1.8 per cent at $78.42 a barrel, while US crude rose 1.9 per cent to $75.26. Elsewhere in commodity markets, gold edged down 0.1 per cent to $3,363 an ounce. World share markets were proving resilient so far, with S&P 500 futures off a modest 0.3 per cent and Nasdaq futures down 0.4 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.0 per cent, while Chinese blue chips dipped 0.2 per cent. Japan's Nikkei eased 0.6 per cent, though surveys showed manufacturing activity there returned to growth in June after nearly a year of contraction. Eurostoxx 50 futures lost 0.4 per cent, while FTSE futures fell 0.3 per cent and Dax futures slipped 0.5 per cent. Europe and Japan are heavily reliant on imported oil and LNG, whereas the United States is a net exporter. The dollar edged up 0.3 per cent on the Japanese yen to 146.50 yen, while the euro dipped 0.2 per cent to $1.1500. The dollar index firmed marginally to 98.958. There was also no sign of a rush to the traditional safety of Treasuries, with 10-year yields rising 2 basis points to 4.395 per cent. Futures for Federal Reserve interest rates were a tick lower, likely reflecting concerns a sustained rise in oil prices would add to inflationary pressures at a time when tariffs were just being felt in US prices. Markets are still pricing only a slim chance the Fed will cut at its next meeting on July 30th, even after Fed governor Christopher Waller broke ranks and argued for a July easing. Most other Fed members, including chair Jerome Powell, have been more cautious on policy leading markets to wager a cut is far more likely in September. At least 15 Fed officials are speaking this week, and Powell faces two days of questions from lawmakers, which is certain to cover the potential impact of president Donald Trump's tariffs and the attack on Iran. The Middle East will be high on the agenda at a NATO leaders meeting at the Hague this week, where most members have agreed to commit to a sharp rise in defence spending. Among the economic data due are figures on US core inflation and weekly jobless claims, along with early readings on June factory activity from across the globe. – Reuters
The Advertiser
13 hours ago
- Business
- The Advertiser
Shares slip, oil rises as investors weigh Iran outcomes
Shares have slipped in Asia and oil prices briefly hit five-month highs as investors anxiously wait to see if Iran will retaliate against US attacks on its nuclear sites, with resulting risks to global activity and inflation. Early moves were contained, with the dollar getting only a minor safe-haven bid and no sign of panic selling across markets. Oil prices were up about 2.8 per cent, but off their initial peaks. Optimists are hoping Iran might back down now its nuclear ambitions had been curtailed, or even that regime change might bring a less hostile government to power there. Analysts at JPMorgan, however, cautioned that past episodes of regime change in the region typically resulted in oil prices spiking by as much as 76 per cent and averaging a 30 per cent rise over time. Key will be access through the Strait of Hormuz, which is only about 33 kilometres wide at its narrowest point and carries about a quarter of global oil trade and 20 per cent of liquefied natural gas supplies. "Selective disruptions that scare off oil tankers make more sense than closing the Strait of Hormuz given Iran's oil exports would be shut down too," said Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia. "In a scenario where Iran selectively disrupts shipping through the Strait of Hormuz, we see Brent oil reaching at least $100/bbl." For now, Brent was up a relatively restrained 2.7 per cent at $79.12 a barrel, while US crude rose 2.8 per cent to $75.98. Elsewhere in commodity markets, gold edged down 0.1 per cent to $3,363 an ounce. Share markets were proving resilient so far, with S&P 500 futures off a moderate 0.5 per cent and Nasdaq futures down 0.6 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5, and Japan's Nikkei eased 0.9 per cent. EUROSTOXX 50 futures lost 0.7 per cent, while FTSE futures fell 0.5 per cent and DAX futures slipped 0.7 per cent. Europe and Japan are heavily reliant on imported oil and LNG, whereas the United States is a net exporter. The dollar edged up 0.3 per cent on the Japanese yen to 146.48 yen , while the euro dipped 0.3 per cent to $1.1481. The dollar index firmed 0.17 per cent to 99.078. There was also no sign of a rush to the traditional safety of Treasuries, with 10-year yields rising two basis points to 4.397 per cent. Futures for Federal Reserve interest rates were a tick lower, likely reflecting concerns a sustained rise in oil prices would add to inflationary pressures at a time when tariffs were just being felt in US prices. Markets are still pricing only a slim chance the Fed will cut at its next meeting on July 30, even after Fed governor Christopher Waller broke ranks and argued for a July easing. Most other Fed members, including chair Jerome Powell, have been more cautious on policy leading markets to wager a cut is far more likely in September. At least 15 Fed officials are speaking this week, and Powell faces two days of questions from lawmakers, which is certain to cover the potential impact of President Donald Trump's tariffs and the attack on Iran. The Middle East will be high on the agenda at a NATO leaders' meeting at the Hague this week, where most members have agreed to commit to a sharp rise in defence spending. Among the economic data due are figures on US core inflation and weekly jobless claims, along with early readings on June factory activity from across the globe. Shares have slipped in Asia and oil prices briefly hit five-month highs as investors anxiously wait to see if Iran will retaliate against US attacks on its nuclear sites, with resulting risks to global activity and inflation. Early moves were contained, with the dollar getting only a minor safe-haven bid and no sign of panic selling across markets. Oil prices were up about 2.8 per cent, but off their initial peaks. Optimists are hoping Iran might back down now its nuclear ambitions had been curtailed, or even that regime change might bring a less hostile government to power there. Analysts at JPMorgan, however, cautioned that past episodes of regime change in the region typically resulted in oil prices spiking by as much as 76 per cent and averaging a 30 per cent rise over time. Key will be access through the Strait of Hormuz, which is only about 33 kilometres wide at its narrowest point and carries about a quarter of global oil trade and 20 per cent of liquefied natural gas supplies. "Selective disruptions that scare off oil tankers make more sense than closing the Strait of Hormuz given Iran's oil exports would be shut down too," said Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia. "In a scenario where Iran selectively disrupts shipping through the Strait of Hormuz, we see Brent oil reaching at least $100/bbl." For now, Brent was up a relatively restrained 2.7 per cent at $79.12 a barrel, while US crude rose 2.8 per cent to $75.98. Elsewhere in commodity markets, gold edged down 0.1 per cent to $3,363 an ounce. Share markets were proving resilient so far, with S&P 500 futures off a moderate 0.5 per cent and Nasdaq futures down 0.6 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5, and Japan's Nikkei eased 0.9 per cent. EUROSTOXX 50 futures lost 0.7 per cent, while FTSE futures fell 0.5 per cent and DAX futures slipped 0.7 per cent. Europe and Japan are heavily reliant on imported oil and LNG, whereas the United States is a net exporter. The dollar edged up 0.3 per cent on the Japanese yen to 146.48 yen , while the euro dipped 0.3 per cent to $1.1481. The dollar index firmed 0.17 per cent to 99.078. There was also no sign of a rush to the traditional safety of Treasuries, with 10-year yields rising two basis points to 4.397 per cent. Futures for Federal Reserve interest rates were a tick lower, likely reflecting concerns a sustained rise in oil prices would add to inflationary pressures at a time when tariffs were just being felt in US prices. Markets are still pricing only a slim chance the Fed will cut at its next meeting on July 30, even after Fed governor Christopher Waller broke ranks and argued for a July easing. Most other Fed members, including chair Jerome Powell, have been more cautious on policy leading markets to wager a cut is far more likely in September. At least 15 Fed officials are speaking this week, and Powell faces two days of questions from lawmakers, which is certain to cover the potential impact of President Donald Trump's tariffs and the attack on Iran. The Middle East will be high on the agenda at a NATO leaders' meeting at the Hague this week, where most members have agreed to commit to a sharp rise in defence spending. Among the economic data due are figures on US core inflation and weekly jobless claims, along with early readings on June factory activity from across the globe. Shares have slipped in Asia and oil prices briefly hit five-month highs as investors anxiously wait to see if Iran will retaliate against US attacks on its nuclear sites, with resulting risks to global activity and inflation. Early moves were contained, with the dollar getting only a minor safe-haven bid and no sign of panic selling across markets. Oil prices were up about 2.8 per cent, but off their initial peaks. Optimists are hoping Iran might back down now its nuclear ambitions had been curtailed, or even that regime change might bring a less hostile government to power there. Analysts at JPMorgan, however, cautioned that past episodes of regime change in the region typically resulted in oil prices spiking by as much as 76 per cent and averaging a 30 per cent rise over time. Key will be access through the Strait of Hormuz, which is only about 33 kilometres wide at its narrowest point and carries about a quarter of global oil trade and 20 per cent of liquefied natural gas supplies. "Selective disruptions that scare off oil tankers make more sense than closing the Strait of Hormuz given Iran's oil exports would be shut down too," said Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia. "In a scenario where Iran selectively disrupts shipping through the Strait of Hormuz, we see Brent oil reaching at least $100/bbl." For now, Brent was up a relatively restrained 2.7 per cent at $79.12 a barrel, while US crude rose 2.8 per cent to $75.98. Elsewhere in commodity markets, gold edged down 0.1 per cent to $3,363 an ounce. Share markets were proving resilient so far, with S&P 500 futures off a moderate 0.5 per cent and Nasdaq futures down 0.6 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5, and Japan's Nikkei eased 0.9 per cent. EUROSTOXX 50 futures lost 0.7 per cent, while FTSE futures fell 0.5 per cent and DAX futures slipped 0.7 per cent. Europe and Japan are heavily reliant on imported oil and LNG, whereas the United States is a net exporter. The dollar edged up 0.3 per cent on the Japanese yen to 146.48 yen , while the euro dipped 0.3 per cent to $1.1481. The dollar index firmed 0.17 per cent to 99.078. There was also no sign of a rush to the traditional safety of Treasuries, with 10-year yields rising two basis points to 4.397 per cent. Futures for Federal Reserve interest rates were a tick lower, likely reflecting concerns a sustained rise in oil prices would add to inflationary pressures at a time when tariffs were just being felt in US prices. Markets are still pricing only a slim chance the Fed will cut at its next meeting on July 30, even after Fed governor Christopher Waller broke ranks and argued for a July easing. Most other Fed members, including chair Jerome Powell, have been more cautious on policy leading markets to wager a cut is far more likely in September. At least 15 Fed officials are speaking this week, and Powell faces two days of questions from lawmakers, which is certain to cover the potential impact of President Donald Trump's tariffs and the attack on Iran. The Middle East will be high on the agenda at a NATO leaders' meeting at the Hague this week, where most members have agreed to commit to a sharp rise in defence spending. Among the economic data due are figures on US core inflation and weekly jobless claims, along with early readings on June factory activity from across the globe. Shares have slipped in Asia and oil prices briefly hit five-month highs as investors anxiously wait to see if Iran will retaliate against US attacks on its nuclear sites, with resulting risks to global activity and inflation. Early moves were contained, with the dollar getting only a minor safe-haven bid and no sign of panic selling across markets. Oil prices were up about 2.8 per cent, but off their initial peaks. Optimists are hoping Iran might back down now its nuclear ambitions had been curtailed, or even that regime change might bring a less hostile government to power there. Analysts at JPMorgan, however, cautioned that past episodes of regime change in the region typically resulted in oil prices spiking by as much as 76 per cent and averaging a 30 per cent rise over time. Key will be access through the Strait of Hormuz, which is only about 33 kilometres wide at its narrowest point and carries about a quarter of global oil trade and 20 per cent of liquefied natural gas supplies. "Selective disruptions that scare off oil tankers make more sense than closing the Strait of Hormuz given Iran's oil exports would be shut down too," said Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia. "In a scenario where Iran selectively disrupts shipping through the Strait of Hormuz, we see Brent oil reaching at least $100/bbl." For now, Brent was up a relatively restrained 2.7 per cent at $79.12 a barrel, while US crude rose 2.8 per cent to $75.98. Elsewhere in commodity markets, gold edged down 0.1 per cent to $3,363 an ounce. Share markets were proving resilient so far, with S&P 500 futures off a moderate 0.5 per cent and Nasdaq futures down 0.6 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5, and Japan's Nikkei eased 0.9 per cent. EUROSTOXX 50 futures lost 0.7 per cent, while FTSE futures fell 0.5 per cent and DAX futures slipped 0.7 per cent. Europe and Japan are heavily reliant on imported oil and LNG, whereas the United States is a net exporter. The dollar edged up 0.3 per cent on the Japanese yen to 146.48 yen , while the euro dipped 0.3 per cent to $1.1481. The dollar index firmed 0.17 per cent to 99.078. There was also no sign of a rush to the traditional safety of Treasuries, with 10-year yields rising two basis points to 4.397 per cent. Futures for Federal Reserve interest rates were a tick lower, likely reflecting concerns a sustained rise in oil prices would add to inflationary pressures at a time when tariffs were just being felt in US prices. Markets are still pricing only a slim chance the Fed will cut at its next meeting on July 30, even after Fed governor Christopher Waller broke ranks and argued for a July easing. Most other Fed members, including chair Jerome Powell, have been more cautious on policy leading markets to wager a cut is far more likely in September. At least 15 Fed officials are speaking this week, and Powell faces two days of questions from lawmakers, which is certain to cover the potential impact of President Donald Trump's tariffs and the attack on Iran. The Middle East will be high on the agenda at a NATO leaders' meeting at the Hague this week, where most members have agreed to commit to a sharp rise in defence spending. Among the economic data due are figures on US core inflation and weekly jobless claims, along with early readings on June factory activity from across the globe.
Zawya
13 hours ago
- Business
- Zawya
Shares slip, oil rises as investors weigh Iran scenarios
SYDNEY: Shares slipped in Asia on Monday and oil prices briefly hit five-month highs as investors anxiously waited to see if Iran would retaliate against U.S. attacks on its nuclear sites, with resulting risks to global activity and inflation. Early moves were contained, with the dollar getting only a minor safe-haven bid and no sign of panic selling across markets. Oil prices were up around 2.8%, but off their initial peaks. Optimists were hoping Iran might back down now its nuclear ambitions had been curtailed, or even that regime change might bring a less hostile government to power there. Analysts at JPMorgan, however, cautioned that past episodes of regime change in the region typically resulted in oil prices spiking by as much as 76% and averaging a 30% rise over time. Key will be access through the Strait of Hormuz, which is only about 33 km (21 miles) wide at its narrowest point and sees around a quarter of global oil trade and 20% of liquefied natural gas supplies. "Selective disruptions that scare off oil tankers make more sense than closing the Strait of Hormuz given Iran's oil exports would be shut down too," said Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia. "In a scenario where Iran selectively disrupts shipping through the Strait of Hormuz, we see Brent oil reaching at least $100/bbl." For now, Brent was up a relatively restrained 2.7% at $79.12 a barrel, while U.S. crude rose 2.8% to $75.98. Elsewhere in commodity markets, gold edged down 0.1% to $3,363 an ounce. Share markets were proving resilient so far, with S&P 500 futures off a moderate 0.5% and Nasdaq futures down 0.6%. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5, and Japan's Nikkei eased 0.9%. EUROSTOXX 50 futures lost 0.7%, while FTSE futures fell 0.5% and DAX futures slipped 0.7%. Europe and Japan are heavily reliant on imported oil and LNG, whereas the United States is a net exporter. QUESTIONING POWELL The dollar edged up 0.3% on the Japanese yen to 146.48 yen , while the euro dipped 0.3% to $1.1481. The dollar index firmed 0.17% to 99.078. There was also no sign of a rush to the traditional safety of Treasuries, with 10-year yields rising 2 basis points to 4.397%. Futures for Federal Reserve interest rates were a tick lower, likely reflecting concerns a sustained rise in oil prices would add to inflationary pressures at a time when tariffs were just being felt in U.S. prices. Markets are still pricing only a slim chance the Fed will cut at its next meeting on July 30, even after Fed Governor Christopher Waller broke ranks and argued for a July easing. Most other Fed members, including Chair Jerome Powell, have been more cautious on policy leading markets to wager a cut is far more likely in September. At least 15 Fed officials are speaking this week, and Powell faces two days of questions from lawmakers, which is certain to cover the potential impact of President Donald Trump's tariffs and the attack on Iran. The Middle East will be high on the agenda at a NATO leaders meeting at the Hague this week, where most members have agreed to commit to a sharp rise in defence spending. Among the economic data due are figures on U.S. core inflation and weekly jobless claims, along with early readings on June factory activity from across the globe. (Reporting by Wayne Cole; Editing by Sam Holmes & Shri Navaratnam)
