Global Markets:
- Asian Stock Markets : Nikkei up 0.38%, Shanghai Composite up 0.11% Hang Seng down 1.29% ASX down 0.58%
- Commodities : Gold at $4,546.66 (0.29%) Silver at $73.268 (-0.36%), Brent Oil at $113.27 (-1.01%), WTI Oil at $108.48 (-1.81%)
- Rates : US 10-year yield at 4.440, UK 10-year yield at 4.9530, Germany 10-year yield at 3.0828
News & Data:
- (USD) Factory Orders m/m 1.5% to 0.5% expected
Markets Update:
Asian stocks declined Tuesday as oil prices eased slightly but remained above $100 a barrel, with markets unsettled by ongoing tensions between the United States and Iran over the Strait of Hormuz. Investors cautiously monitored developments as both nations pursued diplomatic signals while continuing military actions in the region.
MSCI’s Asia-Pacific index excluding Japan slipped 0.3%, while Australian shares fell 0.4% in thin trading. Markets in Japan and South Korea were closed for holidays. U.S. futures also edged lower, with Nasdaq and S&P 500 futures down 0.1%, while European futures followed a similar softer trend.
Renewed conflict in the Gulf heightened concerns about supply disruptions, even as efforts to escort stranded vessels through the strategic waterway continued. Shipping firm Maersk confirmed one of its vessels safely exited the Gulf under military protection. However, analysts noted that the broader geopolitical stalemate remains unresolved, keeping markets volatile.
Oil prices pulled back after earlier gains, with Brent crude at $113.85 and U.S. crude at $105.03. Meanwhile, investors turned attention to upcoming earnings, with strong results so far supporting sentiment. A majority of S&P 500 companies have exceeded expectations, driven largely by continued AI-related spending.
Currency markets remained cautious, with the yen steady after recent volatility and intervention concerns. The U.S. dollar strengthened on safe-haven demand, while gold edged slightly higher.
Upcoming Events:
- 02:00 PM GMT – USD ISM Services PMI
- 02:00 PM GMT – USD JOLTS Job Openings
