Articles in this Cluster
18-06-2025
Asia-Pacific markets were mixed Wednesday as rising Israel-Iran tensions and the prospect of deeper U.S. involvement weighed on sentiment. Japan’s Nikkei rose 0.9% and Topix 0.77%, South Korea’s Kospi gained 0.74%, while Australia’s ASX 200 slipped 0.12%. Hong Kong’s Hang Seng fell 1.12%, but China’s CSI 300 edged up 0.12%. Japan’s May exports fell 1.7% year over year, the sharpest drop in eight months but better than forecasts, aligning with the BOJ’s view that growth may moderate due to weaker trade. U.S. futures dipped ahead of the Fed decision, after all three major U.S. indexes closed lower. Oil jumped over 4% as conflict fears escalated, with top energy CEOs warning of risks to infrastructure. Morgan Stanley said Asia can withstand oil up to about $85 without severe inflation or external pressure. Singapore’s 2025 growth forecast was cut to 1.7% in a central bank survey, citing geopolitical risks. Petronas’ CEO said $50 is the breakeven “sweet spot” to sustain energy investment.
Entities: Japan, Nikkei, Bank of Japan (BOJ), Israel-Iran tensions, U.S. Federal Reserve • Tone: analytical • Sentiment: neutral • Intent: inform
18-06-2025
European stocks traded mixed Wednesday as investors weighed U.K. inflation, central bank moves, and Middle East risks. U.K. CPI eased to 3.4% in May as expected, slightly boosting gilts and fueling debate over a potential dovish shift from the Bank of England, with analysts citing a softening labor market but warning higher energy prices from Israel-Iran tensions could complicate policy. Sweden’s Riksbank cut rates 25 bps to 2% amid cooler inflation but flagged geopolitical risks. Airbus shares rose after lifting its dividend payout range and reaffirming guidance. Markets also eyed the Fed, with rates expected to remain on hold and attention on Powell’s comments and the dot plot.
Entities: Stoxx 600, FTSE, U.K. CPI, Bank of England, Riksbank • Tone: analytical • Sentiment: neutral • Intent: inform
18-06-2025
U.S. stocks were little changed Wednesday after the Fed held rates at 4.25%-4.5%. The Dow fell 0.1%, the S&P 500 slipped 0.03%, and the Nasdaq rose 0.13%. The Fed still projects two cuts this year but flagged stagflation risks, trimming 2025 growth to 1.4% and lifting core inflation to 3.1%. Chair Jerome Powell said tariff impacts on inflation are uncertain and the Fed will wait before adjusting policy. Oil steadied after President Trump said Iran wants to negotiate amid ongoing Israel-Iran conflict. Gold rallied, with Jeffrey Gundlach seeing potential for $4,000 as institutions buy. Several S&P 500 names, including IBM, RTX, and Seagate, hit all-time highs, while consumer staples lagged. McDonald’s continued to underperform, heading for a fourth straight daily decline. Stifel urged buying the dip in Cava, citing long-term AUV growth potential.
Entities: Federal Reserve, Jerome Powell, S&P 500, Nasdaq, Dow Jones Industrial Average • Tone: analytical • Sentiment: neutral • Intent: inform
18-06-2025
UK inflation was 3.4% in May 2025, matching expectations and effectively unchanged from April after an earlier data correction. Core inflation eased to 3.5%. Transport costs dragged inflation down, while food, furniture, and household goods pushed it up; airfares and motor fuel fell. The pound rose slightly. The Bank of England is expected to hold rates now and likely cut by 25 bps in August, with services inflation still elevated at 4.7%. Economists see inflation hovering around 3.4% this year, potentially peaking near 3.6–3.8% if oil and gas prices rise due to Middle East tensions. Finance Minister Rachel Reeves said progress has been made but more work is needed.
Entities: UK inflation, Bank of England, pound sterling, core inflation, services inflation • Tone: analytical • Sentiment: neutral • Intent: inform
18-06-2025
The Federal Reserve is expected to keep interest rates unchanged at 4.25%–4.5%, maintaining its pause as it gauges the impact of President Trump’s tariffs and Middle East tensions on inflation and growth. While inflation has eased to 2.4% year-over-year, policymakers worry higher tariffs and rising oil prices could reignite price pressures. Markets await updated guidance on potential rate cuts later this year, previously projected at about 0.5 percentage point. Political pressure from Trump to cut rates contrasts with rising Treasury yields, which are boosting government and consumer borrowing costs. The Fed is also watching labor supply: a reported 1 million drop in the foreign-born workforce could tighten key sectors and add inflation risk, even as unemployment stays low at 4.2%.
Entities: Federal Reserve, interest rates, inflation, President Donald Trump, tariffs • Tone: analytical • Sentiment: neutral • Intent: inform
