By Jaime Sicilia Martínez
The major European indices have fallen as investors await the announcement of the agreement and given the latest decline in the energy sector. Consumer discretionary stocks led the gains for the second day in a row. The IBEX 35 closed down 0.3%, and the Euro Stoxx 50 fell 0.9%.
In the Asia-Pacific region, the Hong Kong Hang Seng followed up on yesterday’s sharp rise in the indices with a 1.6% gain, and the Japanese Topix rebounded 3.0% after being closed for a holiday. China’s financial regulator recommended that the country’s major banks temporarily suspend new lending to five refineries recently sanctioned by the U.S. due to their ties to Iranian oil.
Iran is expected to send a response via Pakistan within the next two days. U.S. indices are rising on hopes for a resolution to the conflict, strong corporate earnings, and signs of economic resilience.
Donald Trump believes Iran will accept the deal and warned of a possible military escalation if it is rejected.
U.S. jobless claims rose slightly after falling the previous week to near their lowest levels in decades, indicating that layoffs remain moderate. Initial claims rose by 10,000 to 200,000.
Arm Holdings has warned of stagnation in the smartphone market but says growth in AI data centers will offset this.
Italian spirits maker Davide Campari-Milano fell 14% after reporting lower-than-expected revenue growth.
Fixed Income
Yields on major sovereign bonds were flat, following the recent rise driven by fears that rising energy costs will keep rates high for an extended period.
Thus, the yield on the 10-year Bund stands at2.99% and the Spanish benchmark at 3.42%.
The yield on 30-year Treasury bonds exceeded 5%, near its 20-year high, which could affect global markets and the economy by raising the cost of financing for businesses and individuals.
Commodities and Currencies
Donald Trump has stated that there has been progress toward an agreement with Iran, and has therefore withdrawn the “Operation Freedom” military operation, which provided assistance to ships transiting the Strait of Hormuz. He announced that if Iran accepts the deal, he will end military operations and the naval blockade of the Strait of Hormuz.
Gold has risen 0.8% to $4,729.
Meanwhile, the one-month TTF gas price has corrected slightly to €44/MWh.
