Global Market Today: Asian Markets Tumble as US-Iran Fighting Lifts Oil and Bond Yields
Renewed U.S. attacks on Iran sent Brent crude to a five-week high and raised the implied odds of a Fed rate hike to 67%, traders said.
- Asian stocks slumped Wednesday as airstrikes on Iran triggered global market volatility, with Brent crude futures rising 0.7% to $95.34 a barrel after Tuesday's military action pushed oil prices to a five-week high.
- Westpac analysts wrote that "the threat of further disruptions to the Strait of Hormuz has brought about renewed anxiety over inflation, driving a selloff in stocks across most major markets and a rout in global bond markets."
- MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.8% in early trading, while South Korea's KOSPI dropped 3% and Japan's Nikkei 225 sank 2.2%, as the Treasury 10-year yield rose to 4.798%.
- Fed funds futures now price a 67% probability of a 25-basis-point rate hike at the September 16 meeting, up from 39.6% last week, as traders remain uncertain whether the Federal Reserve will proceed with the increase.
- Data from the Institute for Supply Management released Tuesday showed manufacturing activity moderated in August amid a slowdown in new orders, though the sector remained in expansionary territory.
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41 Articles
WTI At 5-Week Highs As US-Iran Fighting Resumes; US Production At Record High As Cushing & SPR Hit 'Tank Bottoms'
WTI At 5-Week Highs As US-Iran Fighting Resumes; US Production At Record High As Cushing & SPR Hit 'Tank Bottoms' Oil prices were volatile but are trading around unchanged this morning, but still near the highest closing level in five weeks (WTI topped $92 overnight) as hostilities broke out again between the US and Iran, renewing the threat to energy exports from the Middle East. The US conducted a second day of strikes on the Islamic Republic …
Asian Shares Retreat On Inflation, Interest Rate Concerns
Asian stocks fell sharply on Wednesday as escalating U.S.-Iran tensions pushed oil prices and global bond yields higher. The U.S. dollar was steady near a two-week high while gold prices fell toward $4,300 an ounce after Federal Reserve Governor Michael Barr said in a speech that he would back a rate hike if inflation doesn't cool quickly.
The Asian and Pacific Bags, after six positive sessions, see red and, as already on Wall Street, pay geopolitical instability with the resumption of the clashes between the United States and Iran and the war in Ukraine. (ANSA)
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