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Asian markets mixed, $US sags after Iran-Israel truce

Asian markets mixed, $US sags after Iran-Israel truce

The Advertiser5 hours ago

Asian have stocks stabilised as crude oil hovered near multi-week lows as a ceasefire between Israel and Iran buoyed sentiment, even as hostilities threatened to flare up again.
The US dollar wallowed close to an almost four-year trough versus the euro with two-year US Treasury yields sagging to one-and-a-half month lows as lower oil prices reduced the risk to bonds from an inflation shock.
The shaky truce has so far held, although Israel says it will respond forcefully to Iranian missile strikes that came after US President Donald Trump had announced an end to the hostilities.
In addition, US air strikes did not destroy Iran's nuclear capability and only set it back by a few months, according to a preliminary US intelligence assessment, contradicting Trump's earlier comments that Iran's nuclear programme had been "obliterated".
In Asia, morning trading was mixed with Japan's Nikkei index and Australia's ASX both flat, while Taiwan's index gained one per cent.
Hong Kong's Hang Seng rose 0.6 per cent and mainland Chinese blue chips fell 0.1 per cent.
US stock futures were little changed.
An MSCI index of global stocks held steady after climbing to a record high overnight.
Brent crude ticked up 81 cents to $US67.95 per barrel, bouncing a bit following a plunge of as much as $US14.58 over the previous two sessions. US West Texas Intermediate crude added 70 cents to $US65.07 per barrel.
"Despite the cease fire between Israel and Iran appearing somewhat tenuous, the markets are shrugging it off," said Kyle Rodda, senior financial markets analyst at Capital.com.
"Realistically, the markets don't care if a limited conflict comprised of mostly air strikes continues between the two countries," he said.
"It's the prospect of a broader war, with deeper US intervention and an Iranian blockade of the Strait of Hormuz that really matters. And for now, the risks of that seem low."
The two-year US Treasury yield dipped to the lowest since May 8 at 3.787 per cent.
The US dollar index, which measures the currency against six major counterparts, slipped 0.1 per cent to 97.854.
The dollar slipped 0.1 per cent to 144.70 yen.
The euro added 0.1 per cent to $US1.1625, edging back towards the overnight high of $US1.1641, a level not seen since October 2021.
Federal Reserve Chair Jerome Powell said on Tuesday that higher tariffs could begin raising inflation during the northern summer, a period that will be key to the US central bank considering possible interest rate cuts. Powell spoke at a hearing before the House Financial Services Committee.
Data showed that US consumer confidence unexpectedly deteriorated in June, signalling softening labour market conditions.
Markets continue to price in a roughly 18 per cent chance that the Fed will cut rates in July, according to the CME FedWatch tool.
Asian have stocks stabilised as crude oil hovered near multi-week lows as a ceasefire between Israel and Iran buoyed sentiment, even as hostilities threatened to flare up again.
The US dollar wallowed close to an almost four-year trough versus the euro with two-year US Treasury yields sagging to one-and-a-half month lows as lower oil prices reduced the risk to bonds from an inflation shock.
The shaky truce has so far held, although Israel says it will respond forcefully to Iranian missile strikes that came after US President Donald Trump had announced an end to the hostilities.
In addition, US air strikes did not destroy Iran's nuclear capability and only set it back by a few months, according to a preliminary US intelligence assessment, contradicting Trump's earlier comments that Iran's nuclear programme had been "obliterated".
In Asia, morning trading was mixed with Japan's Nikkei index and Australia's ASX both flat, while Taiwan's index gained one per cent.
Hong Kong's Hang Seng rose 0.6 per cent and mainland Chinese blue chips fell 0.1 per cent.
US stock futures were little changed.
An MSCI index of global stocks held steady after climbing to a record high overnight.
Brent crude ticked up 81 cents to $US67.95 per barrel, bouncing a bit following a plunge of as much as $US14.58 over the previous two sessions. US West Texas Intermediate crude added 70 cents to $US65.07 per barrel.
"Despite the cease fire between Israel and Iran appearing somewhat tenuous, the markets are shrugging it off," said Kyle Rodda, senior financial markets analyst at Capital.com.
"Realistically, the markets don't care if a limited conflict comprised of mostly air strikes continues between the two countries," he said.
"It's the prospect of a broader war, with deeper US intervention and an Iranian blockade of the Strait of Hormuz that really matters. And for now, the risks of that seem low."
The two-year US Treasury yield dipped to the lowest since May 8 at 3.787 per cent.
The US dollar index, which measures the currency against six major counterparts, slipped 0.1 per cent to 97.854.
The dollar slipped 0.1 per cent to 144.70 yen.
The euro added 0.1 per cent to $US1.1625, edging back towards the overnight high of $US1.1641, a level not seen since October 2021.
Federal Reserve Chair Jerome Powell said on Tuesday that higher tariffs could begin raising inflation during the northern summer, a period that will be key to the US central bank considering possible interest rate cuts. Powell spoke at a hearing before the House Financial Services Committee.
Data showed that US consumer confidence unexpectedly deteriorated in June, signalling softening labour market conditions.
Markets continue to price in a roughly 18 per cent chance that the Fed will cut rates in July, according to the CME FedWatch tool.
Asian have stocks stabilised as crude oil hovered near multi-week lows as a ceasefire between Israel and Iran buoyed sentiment, even as hostilities threatened to flare up again.
The US dollar wallowed close to an almost four-year trough versus the euro with two-year US Treasury yields sagging to one-and-a-half month lows as lower oil prices reduced the risk to bonds from an inflation shock.
The shaky truce has so far held, although Israel says it will respond forcefully to Iranian missile strikes that came after US President Donald Trump had announced an end to the hostilities.
In addition, US air strikes did not destroy Iran's nuclear capability and only set it back by a few months, according to a preliminary US intelligence assessment, contradicting Trump's earlier comments that Iran's nuclear programme had been "obliterated".
In Asia, morning trading was mixed with Japan's Nikkei index and Australia's ASX both flat, while Taiwan's index gained one per cent.
Hong Kong's Hang Seng rose 0.6 per cent and mainland Chinese blue chips fell 0.1 per cent.
US stock futures were little changed.
An MSCI index of global stocks held steady after climbing to a record high overnight.
Brent crude ticked up 81 cents to $US67.95 per barrel, bouncing a bit following a plunge of as much as $US14.58 over the previous two sessions. US West Texas Intermediate crude added 70 cents to $US65.07 per barrel.
"Despite the cease fire between Israel and Iran appearing somewhat tenuous, the markets are shrugging it off," said Kyle Rodda, senior financial markets analyst at Capital.com.
"Realistically, the markets don't care if a limited conflict comprised of mostly air strikes continues between the two countries," he said.
"It's the prospect of a broader war, with deeper US intervention and an Iranian blockade of the Strait of Hormuz that really matters. And for now, the risks of that seem low."
The two-year US Treasury yield dipped to the lowest since May 8 at 3.787 per cent.
The US dollar index, which measures the currency against six major counterparts, slipped 0.1 per cent to 97.854.
The dollar slipped 0.1 per cent to 144.70 yen.
The euro added 0.1 per cent to $US1.1625, edging back towards the overnight high of $US1.1641, a level not seen since October 2021.
Federal Reserve Chair Jerome Powell said on Tuesday that higher tariffs could begin raising inflation during the northern summer, a period that will be key to the US central bank considering possible interest rate cuts. Powell spoke at a hearing before the House Financial Services Committee.
Data showed that US consumer confidence unexpectedly deteriorated in June, signalling softening labour market conditions.
Markets continue to price in a roughly 18 per cent chance that the Fed will cut rates in July, according to the CME FedWatch tool.
Asian have stocks stabilised as crude oil hovered near multi-week lows as a ceasefire between Israel and Iran buoyed sentiment, even as hostilities threatened to flare up again.
The US dollar wallowed close to an almost four-year trough versus the euro with two-year US Treasury yields sagging to one-and-a-half month lows as lower oil prices reduced the risk to bonds from an inflation shock.
The shaky truce has so far held, although Israel says it will respond forcefully to Iranian missile strikes that came after US President Donald Trump had announced an end to the hostilities.
In addition, US air strikes did not destroy Iran's nuclear capability and only set it back by a few months, according to a preliminary US intelligence assessment, contradicting Trump's earlier comments that Iran's nuclear programme had been "obliterated".
In Asia, morning trading was mixed with Japan's Nikkei index and Australia's ASX both flat, while Taiwan's index gained one per cent.
Hong Kong's Hang Seng rose 0.6 per cent and mainland Chinese blue chips fell 0.1 per cent.
US stock futures were little changed.
An MSCI index of global stocks held steady after climbing to a record high overnight.
Brent crude ticked up 81 cents to $US67.95 per barrel, bouncing a bit following a plunge of as much as $US14.58 over the previous two sessions. US West Texas Intermediate crude added 70 cents to $US65.07 per barrel.
"Despite the cease fire between Israel and Iran appearing somewhat tenuous, the markets are shrugging it off," said Kyle Rodda, senior financial markets analyst at Capital.com.
"Realistically, the markets don't care if a limited conflict comprised of mostly air strikes continues between the two countries," he said.
"It's the prospect of a broader war, with deeper US intervention and an Iranian blockade of the Strait of Hormuz that really matters. And for now, the risks of that seem low."
The two-year US Treasury yield dipped to the lowest since May 8 at 3.787 per cent.
The US dollar index, which measures the currency against six major counterparts, slipped 0.1 per cent to 97.854.
The dollar slipped 0.1 per cent to 144.70 yen.
The euro added 0.1 per cent to $US1.1625, edging back towards the overnight high of $US1.1641, a level not seen since October 2021.
Federal Reserve Chair Jerome Powell said on Tuesday that higher tariffs could begin raising inflation during the northern summer, a period that will be key to the US central bank considering possible interest rate cuts. Powell spoke at a hearing before the House Financial Services Committee.
Data showed that US consumer confidence unexpectedly deteriorated in June, signalling softening labour market conditions.
Markets continue to price in a roughly 18 per cent chance that the Fed will cut rates in July, according to the CME FedWatch tool.

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Treasurer seeks trade balance in latest US tariff talks
Treasurer seeks trade balance in latest US tariff talks

The Advertiser

time3 hours ago

  • The Advertiser

Treasurer seeks trade balance in latest US tariff talks

Jim Chalmers has made the case to his US counterpart to remove American-imposed tariffs, while rebuffing calls to increase defence spending in line with NATO allies. The treasurer spoke with US Treasury Secretary Scott Bessent on Wednesday, the third time the pair have talked. Dr Chalmers said he pushed for a deal to remove tariffs on Australian exports into the US imposed by President Donald Trump. "This was a very positive discussion, a very productive discussion," he told reporters in Brisbane on Wednesday. "I made our case once again when it comes to trade and tariffs and these escalating trade tensions around the world. "The global economic environment is very uncertain, very unpredictable and very volatile." Australian goods are slugged with a 10 per cent tariff to enter the US, while steel and aluminium products have a 50 per cent tariff. As Deputy Prime Minister Richard Marles represents Australia at the NATO summit in The Hague, it remains unclear whether he will secure a face-to-face meeting with Mr Trump at the gathering of world leaders. Mr Marles is attending in place of Prime Minister Anthony Albanese, who pulled the pin on a potential trip to The Hague after other Indo-Pacific leaders opted out. Mr Albanese's planned first face-to-face meeting with Mr Trump, on the sidelines of the G7 summit earlier in June, was cancelled after an escalation in the conflict in the Middle East between Israel and Iran. Asked if he would meet the US president, Mr Marles said it wasn't yet confirmed. "It's not specifically on the agenda and I wouldn't want to overstate any of that," he told reporters at the security summit on Wednesday. "We are in large rooms with lots of people, and these meetings, gatherings like this, end up being pretty fluid in terms of the bilaterals that you end up organising." NATO countries have agreed to increase defence spending to five per cent of GDP, as the US also puts pressure on allies to boost money spent in the area. While the US has called on Australia to lift defence spending to 3.5 per cent, the federal government aims to increase it from two to 2.3 per cent by 2033/34. Dr Chalmers stood by the government's spend despite the boost from allies. "It's not unusual for our partners and friends around the world to express or have a preference for us to spend more on defence. We are actually already very substantially increasing our investment in defence," he said. "Obviously we've seen the announcements out of Europe. We're obviously tracking those developments very closely ... but we are already dramatically increasing our investment in defence. "That's warranted and that's why we're doing it." Jim Chalmers has made the case to his US counterpart to remove American-imposed tariffs, while rebuffing calls to increase defence spending in line with NATO allies. The treasurer spoke with US Treasury Secretary Scott Bessent on Wednesday, the third time the pair have talked. Dr Chalmers said he pushed for a deal to remove tariffs on Australian exports into the US imposed by President Donald Trump. "This was a very positive discussion, a very productive discussion," he told reporters in Brisbane on Wednesday. "I made our case once again when it comes to trade and tariffs and these escalating trade tensions around the world. "The global economic environment is very uncertain, very unpredictable and very volatile." Australian goods are slugged with a 10 per cent tariff to enter the US, while steel and aluminium products have a 50 per cent tariff. As Deputy Prime Minister Richard Marles represents Australia at the NATO summit in The Hague, it remains unclear whether he will secure a face-to-face meeting with Mr Trump at the gathering of world leaders. Mr Marles is attending in place of Prime Minister Anthony Albanese, who pulled the pin on a potential trip to The Hague after other Indo-Pacific leaders opted out. Mr Albanese's planned first face-to-face meeting with Mr Trump, on the sidelines of the G7 summit earlier in June, was cancelled after an escalation in the conflict in the Middle East between Israel and Iran. Asked if he would meet the US president, Mr Marles said it wasn't yet confirmed. "It's not specifically on the agenda and I wouldn't want to overstate any of that," he told reporters at the security summit on Wednesday. "We are in large rooms with lots of people, and these meetings, gatherings like this, end up being pretty fluid in terms of the bilaterals that you end up organising." NATO countries have agreed to increase defence spending to five per cent of GDP, as the US also puts pressure on allies to boost money spent in the area. While the US has called on Australia to lift defence spending to 3.5 per cent, the federal government aims to increase it from two to 2.3 per cent by 2033/34. Dr Chalmers stood by the government's spend despite the boost from allies. "It's not unusual for our partners and friends around the world to express or have a preference for us to spend more on defence. We are actually already very substantially increasing our investment in defence," he said. "Obviously we've seen the announcements out of Europe. We're obviously tracking those developments very closely ... but we are already dramatically increasing our investment in defence. "That's warranted and that's why we're doing it." Jim Chalmers has made the case to his US counterpart to remove American-imposed tariffs, while rebuffing calls to increase defence spending in line with NATO allies. The treasurer spoke with US Treasury Secretary Scott Bessent on Wednesday, the third time the pair have talked. Dr Chalmers said he pushed for a deal to remove tariffs on Australian exports into the US imposed by President Donald Trump. "This was a very positive discussion, a very productive discussion," he told reporters in Brisbane on Wednesday. "I made our case once again when it comes to trade and tariffs and these escalating trade tensions around the world. "The global economic environment is very uncertain, very unpredictable and very volatile." Australian goods are slugged with a 10 per cent tariff to enter the US, while steel and aluminium products have a 50 per cent tariff. As Deputy Prime Minister Richard Marles represents Australia at the NATO summit in The Hague, it remains unclear whether he will secure a face-to-face meeting with Mr Trump at the gathering of world leaders. Mr Marles is attending in place of Prime Minister Anthony Albanese, who pulled the pin on a potential trip to The Hague after other Indo-Pacific leaders opted out. Mr Albanese's planned first face-to-face meeting with Mr Trump, on the sidelines of the G7 summit earlier in June, was cancelled after an escalation in the conflict in the Middle East between Israel and Iran. Asked if he would meet the US president, Mr Marles said it wasn't yet confirmed. "It's not specifically on the agenda and I wouldn't want to overstate any of that," he told reporters at the security summit on Wednesday. "We are in large rooms with lots of people, and these meetings, gatherings like this, end up being pretty fluid in terms of the bilaterals that you end up organising." NATO countries have agreed to increase defence spending to five per cent of GDP, as the US also puts pressure on allies to boost money spent in the area. While the US has called on Australia to lift defence spending to 3.5 per cent, the federal government aims to increase it from two to 2.3 per cent by 2033/34. Dr Chalmers stood by the government's spend despite the boost from allies. "It's not unusual for our partners and friends around the world to express or have a preference for us to spend more on defence. We are actually already very substantially increasing our investment in defence," he said. "Obviously we've seen the announcements out of Europe. We're obviously tracking those developments very closely ... but we are already dramatically increasing our investment in defence. "That's warranted and that's why we're doing it." Jim Chalmers has made the case to his US counterpart to remove American-imposed tariffs, while rebuffing calls to increase defence spending in line with NATO allies. The treasurer spoke with US Treasury Secretary Scott Bessent on Wednesday, the third time the pair have talked. Dr Chalmers said he pushed for a deal to remove tariffs on Australian exports into the US imposed by President Donald Trump. "This was a very positive discussion, a very productive discussion," he told reporters in Brisbane on Wednesday. "I made our case once again when it comes to trade and tariffs and these escalating trade tensions around the world. "The global economic environment is very uncertain, very unpredictable and very volatile." Australian goods are slugged with a 10 per cent tariff to enter the US, while steel and aluminium products have a 50 per cent tariff. As Deputy Prime Minister Richard Marles represents Australia at the NATO summit in The Hague, it remains unclear whether he will secure a face-to-face meeting with Mr Trump at the gathering of world leaders. Mr Marles is attending in place of Prime Minister Anthony Albanese, who pulled the pin on a potential trip to The Hague after other Indo-Pacific leaders opted out. Mr Albanese's planned first face-to-face meeting with Mr Trump, on the sidelines of the G7 summit earlier in June, was cancelled after an escalation in the conflict in the Middle East between Israel and Iran. Asked if he would meet the US president, Mr Marles said it wasn't yet confirmed. "It's not specifically on the agenda and I wouldn't want to overstate any of that," he told reporters at the security summit on Wednesday. "We are in large rooms with lots of people, and these meetings, gatherings like this, end up being pretty fluid in terms of the bilaterals that you end up organising." NATO countries have agreed to increase defence spending to five per cent of GDP, as the US also puts pressure on allies to boost money spent in the area. While the US has called on Australia to lift defence spending to 3.5 per cent, the federal government aims to increase it from two to 2.3 per cent by 2033/34. Dr Chalmers stood by the government's spend despite the boost from allies. "It's not unusual for our partners and friends around the world to express or have a preference for us to spend more on defence. We are actually already very substantially increasing our investment in defence," he said. "Obviously we've seen the announcements out of Europe. We're obviously tracking those developments very closely ... but we are already dramatically increasing our investment in defence. "That's warranted and that's why we're doing it."

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