Global Markets:
- Asian Stock Markets : Nikkei down 1.12%, Shanghai Composite down 0.7%, Hang Seng down 0.69% ASX down 0.38%
- Commodities : Gold at $3449.35 (1.49%), Silver at $36.68 (0.19%), Brent Oil at $77.8 (8.39%), WTI Oil at $73.8 (8.3%)
- Rates : US 10-year yield at 4.343, UK 10-year yield at 4.4850, Germany 10-year yield at 2.4780
News & Data:
- (USD) Core PPI m/m 0.1% to 0.3% expected
- (USD) PPI m/m 0.1% to 0.2% expected
- (USD) Unemployment Claims 248K to 242K expected
Markets Update:
Asia-Pacific markets declined Friday after Israel launched airstrikes on Iran targeting its nuclear facilities, raising fears of wider conflict. Iran has vowed to retaliate, heightening geopolitical tensions across global markets.
Japan’s Nikkei 225 fell 1.12% and the Topix lost 0.96%. South Korea’s Kospi slid 0.98%, while the Kosdaq tumbled 2.91%. Australia’s S&P/ASX 200 dipped 0.23%. In Greater China, Hong Kong’s Hang Seng dropped 0.72% and mainland China’s CSI 300 also slipped 0.72%. In India, the Nifty 50 shed 1.01% and the BSE Sensex declined 1.42%.
The Israeli defense minister declared a “special situation,” and U.S. officials confirmed Israel acted without American involvement. Defense Minister Israel Katz warned of an imminent missile and drone attack from Iran.
Oil prices surged on the news, with U.S. West Texas Intermediate jumping 10.21% to $74.99 per barrel and Brent crude rising 10.28% to $76.48. MST Marquee’s Saul Kavonic noted that markets had underestimated geopolitical risks, which are now becoming more tangible. He suggested the attacks might pressure U.S.-Iran talks before de-escalation.
In the U.S., stock futures dipped late Thursday as tensions escalated. However, cooler-than-expected inflation data boosted investor confidence. May’s producer prices rose just 0.1%, below the 0.2% forecast, following a similarly soft consumer inflation report earlier in the week.
Despite geopolitical jitters, U.S. stocks closed higher overnight. The S&P 500 gained 0.38%, the Nasdaq advanced 0.24%, and the Dow Jones added 101.85 points, buoyed by strong tech performance led by Oracle.
Upcoming Events:
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