(July 8): Stocks fell and oil rallied after President Donald Trump declared the ceasefire between the US and Iran over amid an escalation in hostilities in the Middle East. South Korea’s Kospi Index entered a bear market.
S&P 500 futures fell 0.8% following the previous session’s selloff in chip stocks. Brent hit the highest level in two weeks, advancing 5.3% to around US$78 a barrel. The Stoxx 600 fell 1.5% as crude prices pushed bond yields higher. Treasuries ticked lower and the dollar wavered.
In South Korea, the Kospi extended losses since last month’s high to 20%. This year’s best-performing major benchmark has been lashed by volatility amid a rotation in the artificial intelligence (AI) trade, with investors shifting out of semiconductors in search of more attractive tech valuations. Alibaba Group Holding Ltd jumped 12% in Hong Kong.
Renewed hostilities in the Middle East threaten a fresh wave of disruption to energy markets. Trump’s remarks came shortly after the US launched a new wave of strikes against Iran and revoked a waiver that allowed the sale of Iranian oil.
“Overlapping negative news flow is pushing markets down now and with no major earnings coming out in the next few days to change that trend, it seems there will be little respite for markets,” said Michael Field, chief equity strategist at Morningstar.
Corporate news:
See also: Stock market euphoria: retail frenzy, AI optimism and the risks ahead
- UniCredit SpA moved closer to control of Commerzbank AG after investors tendered enough shares at the end of the Italian lender’s takeover offer to raise the stake it can potentially oversee to 47.6%.
- Singaporean state-owned investor Temasek Holdings Pte Ltd is ramping up its exposure to AI and the Americas, a shift which helped push its net portfolio value to $518 billion in the last financial year.
Some of the main moves in markets:
Stocks
See also: Asian shares rise as chips rally, brent advances
- The Stoxx Europe 600 fell 1.5% as of 9.32am London time
- S&P 500 futures fell 0.7%
- Nasdaq 100 futures fell 1.1%
- Futures on the Dow Jones Industrial Average fell 0.7%
- The MSCI Asia Pacific Index fell 0.8%
- The MSCI Emerging Markets Index fell 0.6%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at US$1.1413
- The Japanese yen fell 0.2% to 162.40 per dollar
- The offshore yuan was unchanged at 6.8035 per dollar
- The British pound was little changed at US$1.3348
Cryptocurrencies
- Bitcoin fell 2.7% to US$61,960.66
- Ether fell 2.9% to US$1,731.25
Bonds
- The yield on 10-year Treasuries advanced two basis points to 4.57%
- Germany’s 10-year yield advanced six basis points to 3.05%
- Britain’s 10-year yield advanced nine basis points to 4.94%
To stay ahead of Singapore and the region’s corporate and economic trends, click here for Latest Section
Commodities
- Brent crude rose 5.3% to US$78.06 a barrel
- Spot gold fell 0.6% to US$4,079.70 an ounce
Uploaded by Chng Shear Lane
