Reported by Jaime Sicilia Martínez
The main European indices fell following the opening of the US markets, with technology and industrial stocks once again leading the losses in both cases. The rise in oil prices has limited the indices’ gains.
The IBEX 35 closed down 0.2%, the German DAX was the hardest-hit index in Europe with a loss of 0.9%, and the Euro Stoxx 50 fell by 0.6%.
In the Asia-Pacific region, Hong Kong’s Hang Seng fell by 0.64% and Japan’s Topix by 1.25%, affected by yesterday’s falls in the US and the technology sector.
Taiwan Semiconductor Manufacturing reported a 30% increase in monthly sales, driven by strong demand from the global race to build AI infrastructure.
The United States attacked Iranian air defences and facilities near the Strait of Hormuz following the alleged downing of a helicopter, whilst Iran launched missiles and drones at US military targets in Jordan, Bahrain and Kuwait. Following this, Iran warned that it may reconsider its participation in peace talks.
In the US, the CPI rose by 4.2% year-on-year in May, the largest increase since early 2023. The core index rose by 2.9% year-on-year and 0.2% compared to April. Excluding energy, the report paints a more moderate picture, a positive sign for concerns over potential interest rate hikes by the Federal Reserve.
Super Micro Computer falls 9% after announcing plans to raise $7 billion through a share issue to acquire the components needed to fulfil customer orders for AI servers.
A day of rising yields on major sovereign bonds, with the market debating whether the Federal Reserve will raise rates by 25 basis points in 2026.
Thus, the 10-year Bund yield rose by 4 basis points to 3.08% and the Spanish benchmark by 5 basis points to 3.52%. The 10-year Treasury rose by 2 basis points to 4.53%.
Oil prices rose after President Donald Trump stated that Iran would pay the price for delaying negotiations on an interim peace agreement, following fresh attacks overnight.
Gold fell a further 3.6% to $4,109.
Meanwhile, the one-month TTF gas price remains close to €50/MWh, up 70% over the year.
