[Straight into Asia] Explosions in the Middle East shocked the world! Israel took action, crude oil, gold and U.S. bonds soared rapidly, and the Federal Reserve actually mentioned raising interest rat
The rise in bond prices pushed the 10-year Treasury yield down about 10 basis points, relieving recent selling pressure. The U.S. dollar index rose while other safe-haven currencies including the Swiss franc, Japanese yen and gold also strengthened.
Oil prices rose by more than 3%, with Brent crude oil briefly exceeding $90 per barrel and U.S. WTI crude oil soaring to nearly $86 per barrel.
The move focused on unconfirmed reports of bombings in Iran, Iraq and Syria. Meanwhile, Israel is expected to respond to last weekend's attacks from Iran. # Middle East situation#
S&P 500 and Nasdaq 100 futures contracts fell more than 1% after the benchmark stock indexes fell for a fifth straight session on Thursday as markets repriced expectations for a rate cut from the Federal Reserve. Japanese and South Korean stock markets fell more than 2%, and Australian and Hong Kong stock markets fell more than 1%. Mainland China stock indexes were mixed. #亚城真人#
“The escalation of geopolitical risks is unexpected,” said Charu Chanana, strategist at Saxo Capital Markets. “Semiconductor companies’ earnings face a huge task to deal with this increasing risk aversion environment. The escalation of geopolitical situations also adds to the outlook. cast a shadow."
TSMC shares fell after the company cut its revenue growth forecast for the semiconductor industry, citing a slowing recovery in the smartphone and PC industries. Infosys Ltd. shares tumbled after the company forecast tepid sales growth this year.
Japan's inflation data released on Friday came in below economists' expectations. A growing number of economists expect the Bank of Japan to raise interest rates again in October after holding on unchanged next week, with the majority viewing early action in July as a risk scenario, a Bloomberg survey showed.
New York Fed President Williams said that although raising interest rates is not his basic expectation, it is possible to raise interest rates if necessary. His Atlanta counterpart, Bostic, said he did not think it would be appropriate to relax before the end of 2024. Minneapolis Fed President Neel Kashkari told Fox News Channel that the Fed is likely to keep interest rates steady throughout the year.
Michael Landsberg, chief investment officer of Landsberg Bennett Private Wealth Management, said the market’s biggest concern right now is that inflation is accelerating again.
"We firmly believe there will be no rate cuts in 2024," he said. "We believe that on both inflation and interest rates, investors should prepare for a longer period of higher rates and portfolios should be prepared for these dynamics for the foreseeable future. be prepared."
Most Asian emerging market currencies fell. The Indonesian government has asked state-owned enterprises to avoid large-scale purchases of U.S. dollars in anticipation of further weakness in the rupiah. The Indonesian rupiah will be closely watched after it resumes trading.
Elsewhere, gold briefly topped $2,400 on safe-haven demand, with gains boosted by demand from central banks and Chinese consumers.
S&P Global Ratings downgraded Israel's sovereign credit rating to A+ from AA-, citing heightened geopolitical risks in the region, even before Friday's reports of unrest