GGMA Markets Briefing: Oil Nears $100 After US Sinks Iranian Tankers as Yen Extends Rally and Korean Chips Lead Asia
Good morning,
I hope all is well.
Here is a brief summary of today’s Markets Briefing: Oil Nears $100 After US Sinks Iranian Tankers as Yen Extends Rally and Korean Chips Lead Asia
• Brent closed in on triple figures after the US destroyed five Iranian tankers near Kharg Island and in the Gulf of Oman, Iran fired missiles at Jordan and the Revolutionary Guard warned tanker crews at Kuwaiti and Bahraini piers to abandon ship.
• The yen strengthened for a third day after Treasury Secretary Bessent said he has inside insight into what the Bank of Japan will do and dared traders to bet against him, with hedge funds using options to target further gains by year-end.
• Korean chipmakers led Asian equities higher behind SK Hynix and Samsung as the AI trade shrugged off rate-hike fears, with Qualcomm signing Amazon and Apple's foldable iPhone event due tonight.
• RBA Deputy Governor Hauser said the economy and inflation are running stronger than expected and the Board must weigh whether a further rate rise is needed this month.
• Bank of England Governor Bailey told MPs there is no secret plan to raise rates and that the market curve carries a risk premium, while Chancellor Healey said borrowing is still too high and refused to rule out tax rises.
• The US moved to ban Canadian alcohol, whey and motorcycle imports and widened its punitive tariffs hours after Canada's counter-tariffs took effect, with Carney warning of tough days ahead.
Today's Macro Roadmap: Treasury buyback size about 17:00 CET, the 10-year reopening and Apple's event 19:00 CET, Nagel 19:00 CET. ECB Thursday, US CPI Friday.
GGMA Markets Briefing: Oil Nears $100 After US Sinks Iranian Tankers as Yen Extends Rally and Korean Chips Lead Asia
Oil rose towards $100 a barrel after the US military destroyed five Iranian tankers and Iran fired missiles at Jordan, while Korean chipmakers led Asian equities and the yen strengthened for a third day (BBG) (BBG).
Brent rose 0.95% to $98.85 and WTI 0.84% to $93.81 (BBG). Bloomberg reports that the tankers were struck near Kharg Island, which loads about 90% of Iran's crude exports, and in the Gulf of Oman, that the Revolutionary Guard told tanker crews near Kuwaiti and Bahraini piers to abandon their vessels, and that Houthi attacks forced several energy sites in southern Saudi Arabia to halt (BBG). Friday's US inflation report is the next test for the Federal Reserve's meeting next week, and Evercore ISI strategist Krishna Guha wrote that investors should brace for a turbulent week (BBG).
In stocks, Seoul rallied behind SK Hynix and Samsung Electronics after the Philadelphia Semiconductor Index gained on Tuesday, and Bloomberg reports the Kospi is the world's best-performing major index this year (BBG). Nasdaq futures rose 0.22% to 29,604 and S&P 500 futures 0.12% to 7,690, while Nikkei futures slipped 0.18% to 65,090 as the yen extended its gains and the Hang Seng eased 0.11% to 25,198 (BBG) (BBG). In Europe, Euro Stoxx 50 futures fell 0.45% to 6,385, the DAX 0.49% to 25,886 and FTSE futures 0.37% to 10,785 as Brent approached triple figures (BBG) (LS).