Headlines:
- Oil prices ease a bit after Iran’s Foreign Ministry Spokesperson suggests diplomatic efforts are continuing despite the attacks
- Iran says that diplomatic efforts have been “active” in recent days, received proposals from several mediators
- Gold stays under pressure as the US-Iran crisis keeps inflation and rate hike risks elevated
- ECB’s Q2 SAFE survey shows inflation and wage growth expectations easing, but upside risks remain
- German producer prices nudge lower in June due to drop in energy prices
- Market moving news for Asian trading: Oil jumps as US-Iran war spread, Hormuz tankers struck
Market update:
- WTI crude down 2% to $80.05
- European equities slightly higher; S&P 500 futures up 0.5%
- AUD leads, EUR and CAD lag on the day
- US 10-year yields up 0.5 bps to 4.547%
- Gold up 0.3% to $4,030
- Bitcoin up 0.4% to $64,791
There wasn’t too much on the session as markets continue to sing to the tune of the US-Iran conflict.
Tensions remain high over the weekend and that saw oil prices open with a gap higher to start the new week. However, Iran’s foreign ministry spokesperson confirmed that mediation proposals are being put forward and that sparked some hope that negotiations could resume soon enough again.
And that saw oil prices drop back slightly with WTI crude erasing early gains to fall 2% intraday to $80.05.
At the same time, equities recovered some poise after a bit of a shaky start to European morning trade. Major indices in Europe opened with slight losses before recovering back to sit a little higher on the day.
Meanwhile, US futures pushed up to hold a minor bounce ahead of the open later. S&P 500 futures are up 0.5% with Nasdaq futures up 1.0% but that comes after the heavy selling from Friday last week. So, there is still some nerves up in the air.
In the major currencies space, the dollar is mostly little changed with AUD/USD the only notable mover – up 0.4% to 0.7010. Besides that, EUR/USD is flat at 1.1435 and USD/JPY flattish at 162.30 levels on the day.
As for other markets, gold is seen up 0.3% to $4,030 at least while 10-year Treasury yields are up only 0.5 bps to 4.547% with the latter down from around 4.57% earlier in the day.
This article was written by Justin Low at investinglive.com.