Market Summary
US Strikes Iran, Oil Surges on Geopolitical Escalation: Oil prices jumped more than 2.7% as the U.S. launched airstrikes on over 80 Iranian targets and revoked a waiver allowing Tehran to sell crude globally, following attacks on shipping vessels near the Strait of Hormuz. Brent crude climbed above $76 per barrel, while WTI rose 2.6% to $72.74. Iran vowed "decisive" action in response, threatening to undermine last month's interim peace deal and reigniting energy supply concerns.
Asian Stocks Tumble on Geopolitical Tensions and Semiconductor Rotation: The MSCI Asia Pacific Index fell 0.4% as investors weighed renewed Middle East hostilities. South Korea's KOSPI plunged more than 6% as traders rotated out of crowded semiconductor positions, though Hong Kong's Hang Seng surged 2.9% on a more than 10% jump in Alibaba. Japan softened its monetary policy language in a bid to ease concerns over Bank of Japan tightening.
Bonds and US Equities Decline as Oil Rally Clouds Inflation Outlook: Stocks retreated as higher crude prices renewed second-order inflation concerns, prompting speculation about precautionary rate hikes. Ten-year U.S. Treasury yields held steady at 4.55%, while European and Australian yields rose. S&P 500 futures fell 0.2%, and Nasdaq 100 futures dropped 0.3%.
Hedge Funds Post Strongest First Half Since 2021; Tech M&A Accelerates: Hedge funds shook off March losses with their best first-half results in five years, with D.E. Shaw and Marshall Wace posting double-digit gains. Meanwhile, Microsoft is replacing OpenAI and Anthropic models in Excel and Outlook, and Amazon's latest $25 billion bond deal drew roughly half the orders of its March offering.
Economic Calendar
- ECB's Nagel and Dolenc speak
- SNB's Schlegel speaks
- FOMC Meeting Minutes
- U.S. May Consumer Credit
Key Market Moves
- S&P 500 Futures: -0.2% (7,552)
- Nasdaq 100 Futures: -0.3% (29,436)
- Brent Crude: +2.7% ($76.17)
- WTI Crude: +2.6% ($72.74)
- Spot Gold: +0.4% ($4,121)
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