📅 Monday, June 23
► European markets lower as geopolitical tensions weigh & energy jitters weigh
European stocks traded lower, dragged byMiddle East uncertainty and energy concerns. The Stoxx 600 dropped -0.40% led by notable declines in the CAC 40 (-0.70%), DAX (-0.50%), FTSE 100 (-0.15%) and FTSE MIB (-0.9%). Most regional indices are trading in red after an initial rebound from an even sharper losses. Bond yields were mixed, with Germany’s 10Y near 2.50% and UK 10Y easing to 4.50%. EUR/USD slid to 1.146 as the dollar strengthened significantly. Investors focused on oil-related risk premiums and a weaker risk appetite as the Israel-Iran escalation deepened.
► US futures stabilize with markets not expecting conflict in Middle East to widen
US futures wobbled throughout the pre-market session as traders digested the fallout from American strikes on Iranian nuclear sites. US indices are trading near flat after a weak opening during Asian trading. Despite increased tensions, markets remained resilient, with oil prices paring gains and bond yields declining (10Y at 4.35%). Investors are weighing potential stagflation risks if the Strait of Hormuz were disrupted – an, however, unlikely next move from Iran.
► Asian equities mixed as regional tensions and global rate concerns cap gains
Asian markets delivered a mixed performance. Shanghai rose +0.65% and Hang Seng added +0.67% as Chinese investors digested muted trade fallout. Malaysia (+0.92%) also posted gains. However, the Nikkei slid -0.13%, Taiwan tumbled -1.42%, and Kospi fell -0.24% as traders priced in global rate uncertainty and conflict risk. Singapore STI edged down -0.11%. Currency movements were notable — USD/JPY jumped to 147.5, up +1%, reflecting the headwinds for the JPY on rising oil prices & uncertainty.
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