Market UpdatesJun 22, 20262 Min
Global market wrap: Asian stocks trade mixed; gold rebounds as oil slips
We are back with quick updates on global markets, commodities and corporate developments that you shouldn’t miss.
Sentiment was largely positive in the global equity markets as the first round of crucial talks between high-ranking US and Iranian officials in Switzerland ended on Monday with “good progress”.
A joint statement from mediating nations Qatar and Pakistan said that the US and Iran have agreed to a roadmap toward a final deal within 60 days.
Japan’s Nikkei 225 surged almost 2% to cross the 72,000-mark for the first time and trade at 72,490. South Korea’s Kospi also hit a record on Monday to trade 0.6% higher at 9,114. Alongside, China’s Shanghai Composite index rose 1.7% to 4,163.
However, Hong Kong’s Hang Seng fell marginally by 0.6% to 23,782. Singapore’s Straits Times was down just 0.1% to 5,184, while Australia’s S&P/ASX 200 was also trading almost unchanged at 8,816.
US stock futures traded lower on Monday as investors awaited the release of key inflation data this week. Readings on the personal consumption expenditures price index, the US Federal Reserve’s preferred inflation gauge, will be released on Thursday and would indicate the probability of a rate hike in the next Fed meeting in October. S&P 500 futures slipped 0.05%, Nasdaq 100 futures were up 0.1%, while futures tied to the Dow fell 0.05%. Notably, markets in the US were shut on Friday.
Oil prices followed a downward trajectory as operations at the Strait of Hormuz seemed to normalise further last week. A report said that at least 20 oil tankers have crossed the Strait of Hormuz since the US and Iran began to reopen the sea lane to commercial ship traffic, which was the highest level seen since June 2.
The US crude oil futures for July delivery were trading at $75.62 per barrel by 2316 ET, down 0.3%. Brent futures, the international benchmark, for August delivery were down 1.4% to $78.94 per barrel.
Gold prices, meanwhile, bounced back on Monday driven by a drop in crude oil prices. Spot gold gained 0.7% to $4,191 per ounce, while US gold futures for August delivery were trading 0.8% higher at $4,209 per ounce.
Here's a look at some major developments across global markets:
Calls grow for simplification of Europe’s bank rules to boost lending
Alejandra Kindelan, head of Spanish banking association AEB, has said that Europe’s banking sector could boost lending by more than €2 trillion ($2.2 trillion) if regulators were to simplify rules while maintaining financial resilience.,
Banking associations AEB, CECA and UNACC highlighted that regulatory complexity and overlapping capital requirements were constraining European banks’ ability to finance growth.
ECB may raise rates again next month
European Central Bank (ECB) policymaker Pierre Wunsch told Reuters that the central bank may raise interest rates one more time as soon as next month if it sees more evidence of euro zone inflation spreading beyond energy. Last week, the ECB raised borrowing costs for the first time in three years.
SpaceX working on $20 billion bond offering
Bankers of Elon Musk's newly listed company SpaceX are preparing to meet investors as early as next week to discuss a bond offering of at least $20 billion to fund capital-intensive AI expansion, according to a Reuters report.
The report added that SpaceX requires tens of billions of dollars in investment for data centers, computing hardware and power infrastructure for its AI expansion plans.
Space firms seek insurance for orbital data centers
Space companies are speaking to insurers about coverage for orbital AI data centers, according to a report. This is significant as it comes at a time when companies like Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin are signalling their intention to launch space-based data centres.
Currently, insurers already cover launch failures, satellite malfunctions, orbital debris and space weather in a global space market that collects roughly $500 million in annual premiums.
