The US future rates operate on the rise on Monday (23), in a reaction contained to Washington attacks against nuclear facilities in Iran, while investors await the next steps of Tehran and their possible developments.
Markets are preparing for a possible retaliation of Iran, which may include attacks on the basis with American military presence or the closure of the Ormuz Strait – a measure that would have a strong impact on the overall oil flow. A prolonged blockade of the region’s main export route could raise barrel prices to over $ 100. On Sunday, Iranian foreign minister said the Islamic Republic reserves ‘all options’ to defend his sovereignty.
In an interview with Fox News, US Secretary of State Marco Rubio urged the Chinese government to intervene and prevent Iran from closing the narrow. China remains the largest Iranian oil buyer.
United States
In the front of monetary policy, the president of the Federal Reserve (Fed) of San Francisco, Mary Daly, said on Sunday she considers the central bank’s monetary policy “in a good place” today, with risks to her practically equal US employment and price stability. Daly said it predicts that the Central Bank will cut interest rates in the fall, later than Governor Christopher Waller, who said on Friday that he predicts a change in July.
See the performance of future markets:
- Dow Jones Future: +0.12%
- S&P 500 Future: +0.23%
- NASDAQ FUTURE: +0.29%
Asia-Pacific
Asia-Pacific markets have closed mostly low after the US attack on three nuclear facilities in Iran has raised oil prices and investors fears of a climbing in the Middle East conflict.
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- Shanghai Se (China), +0.65%
- Nikkei (Japan): -0.13%
- Hang Seng Index (Hong Kong): +0.67%
- Kospini (South Korea): -0.24%
- ASX 200 (Australia): -0.36%
Europe
European markets start the week falling, pressured by the Middle East crisis escalation after Iran’s US attacks over the weekend. The decision of US President Donald Trump took investors by surprise, as, according to the White House, he had stated last Friday that he would evaluate a possible attack on Iran ‘in the next two weeks.’
- Stoxx 600: +0.16%
- DAX (Germany): +0.15%
- FTSE 100 (UK): +0.10%
- CAC 40 (France): +0.10%
- FTSE MIB (Italy): -0.37%
Commodities
Petroleum prices retreat after opening high, reflecting the tension generated by US direct attacks on Iran, which increased concerns about the unstable and rich oil region of the Middle East.
According to energy analysts, the worst scenario for the oil market would be an attempt by Iran to close Ormuz’s Strait – a strategic route where about 20 million barrels a day passed by 2024, the equivalent of 20% of global consumption, according to US energy information administration.
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Iranian state media reported that the country’s parliament supported the closure of the narrow, citing a high -ranking parliamentarian. However, the final decision is up to Iran’s National Security Council, according to the same report.
Already the quotations of iron ore in China rose with improvement in short term Chinese demand.
- Oil WTI, -0.79%, at $ 73.26 the barrel
- Brent oil, -0.73%, at $ 76.45 the barrel
- Iron ore negotiated on the Dalian Stock Exchange, +0.50%, to 706.00 iuanes (US $ 98.21)
Bitcoin
- Bitcoin (BTC), +2.92% to US $ 101,982.55 (compared to the 24 -hour quote)
(With Reuters and Bloomberg)
