Europe stocks stall amid Middle East tensions.
European shares struggled for direction on Monday as investors weighed the durability of a fragile interim peace deal between the United States and Iran, while a resulting uptick in oil prices revived broader inflationary concerns.
The pan-European STOXX 600 index was down 0.03% at 635.66 points, following a volatile week where it managed only modest gains. Germany’s DAX, France’s CAC 40 and Britain’s FTSE 100 were flat, while Italy’s FTSE MIB slipped 0.2%.
Global markets remained on edge after Washington and Tehran engaged in fresh military strikes over the weekend following an attack on a commercial vessel in the Strait of Hormuz.
While both sides subsequently agreed to halt tit-for-tat attacks ahead of a technical meeting in Doha on Tuesday, the flare-up left investors hesitant to take large positions
Crude prices edged higher on signs of lingering disruptions to maritime traffic through the vital energy chokepoint.
Oil prices rise after US-Iran flareup.
Oil prices rose in Asian trade on Monday after a weekend flareup in U.S.-Iran hostilities cast doubts over their peace deal, although both sides reportedly committed to more talks in Qatar this week.
Brent Oil Futures for August rose 0.65% to $72.46 a barrel by 00:10 ET (04:10 GMT), while West Texas Intermediate crude futures rose 1.2% to $70.07/barrel.
US, Iran trade strikes, but reportedly agree to more talks
The U.S. and Iran traded strikes through late last week amid disagreements over Tehran’s assertion of its authority in Hormuz. The attacks caused some slowing in flows through Hormuz and boosted oil prices on Monday.
But gains in oil were limited by an Axios report that the U.S. and Iran had agreed to immediately halt their hostilities and hold new talks in Qatar this week.
Continued hostilities between Israel and Lebanon remained a major sticking point between the U.S. and Iran, with Tehran demanding that Lebanon be included in any major peace deal.
Asia FX steady as traders weigh fragile Iran ceasefire.
Asian currencies traded in narrow ranges on Monday as investors weighed a fragile easing in tensions between the U.S. and Iran against a busy week of economic data across the region, while the New Zealand dollar remained on track for its steepest monthly decline in nearly two years.
Market sentiment remained cautious after Washington and Tehran traded fresh strikes over the weekend before agreeing to halt further retaliatory attacks and meet in Qatar on Tuesday, offering tentative support for a ceasefire while leaving uncertainty over the Middle East outlook intact.
Attention is also turning to a packed regional calendar that includes China’s manufacturing activity, South Korea’s trade and industrial output, Japan’s Tankan business survey and PMI readings, Indonesia’s inflation data, and India’s industrial production, all of which could shape expectations for monetary policy across Asia.
Kiwi set for biggest monthly loss since 2024
The NZD/USD slipped to around $0.564, leaving it down nearly 5.9% for June and on track for its largest monthly decline since 2024.
Earlier expectations that the Reserve Bank of New Zealand would need to tighten policy aggressively to contain energy-driven inflation have eased in recent weeks. While lower oil prices following the tentative U.S.-Iran ceasefire have reduced immediate inflation concerns, investors remain wary of the longer-lasting economic effects from the earlier energy shock. Continued strength in the U.S. dollar has added further pressure to the kiwi.
Important Note: The information found on Ausprime platform is intended only to be informative, is not advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not include any specific investment objectives, financial situation and needs of any specific person who may receive it. The past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statement
