Daily News 18th June 26
Daily News
Kospi Hits 9,000 and Nikkei Tops 71,000 as Dow Sheds 500 Points; Fed Signals Rate Hike, Oil Slips Below $75, Gold Rebounds Above $4,300
18 June 2026
Today in Brief
Asia-Pacific markets opened mixed, with South Korea's Kospi hitting 9,000 for the first time (up over 1%) and Japan's Nikkei 225 rising 1.79% above 71,000, while Australia's ASX 200 slid 0.29% and Hong Kong's Hang Seng fell 0.76%. U.S. stocks dropped sharply Wednesday as the Fed's first meeting under Chair Kevin Warsh triggered a surge in bond yields after nine of 18 officials signaled a rate hike in 2026 — the Dow fell 507 points to 51,492.55, the S&P 500 lost 1.21%, and the Nasdaq shed 1.34%. Warsh abstained from submitting a dot, calling it unhelpful. Gold tumbled nearly 2% Wednesday on the hawkish Fed tone but recovered above $4,300 Thursday after Trump and Iran's President Pezeshkian digitally signed a memorandum of understanding to end the war. Crude oil fell below $75 as the US-Iran peace deal took effect, though uncertainty remains over when Iran will fully reopen the Strait of Hormuz.
In other news: Trump announced Apple will partner with Intel on US chip design and production; Nippon Steel projects U.S. Steel profits exceeding $624 million this year; J&J's CEO confirmed the company will skip obesity drugs and aim to become the world's top cancer company by 2030; and Saudi Aramco is lining up asset sales potentially worth up to $50 billion including a stake in its sulphur business. Iran and Oman are set to define future Hormuz administration in talks with Gulf states, while the Indian rupee weakened on the hawkish Fed surprise.
Asia-Pacific markets opened mixed, with South Korea's Kospi and Japan's Nikkei 225 jumping to fresh records
Asia-Pacific markets opened mixed, with South Korea's Kospi and Japan's Nikkei 225 jumping to fresh records. The Kospi rose over 1% to hit 9,000 for the first time. Index heavyweight SK Hynix advanced 3.45% to notch a fresh high, while Samsung Electronics rose 1.23%. The small-cap Kosdaq declined 0.5%. Japan's Nikkei 225 traded 1.79% higher to rise above 71,000 for the first time, while the Topix was up 1.48%. Australia's benchmark S&P/ASX 200 slid 0.29%. Hong Kong's Hang Seng index was down 0.76%, while the mainland's CSI 300 was flat. Wednesday marked the first meeting of the Federal Reserve with Kevin Warsh at the helm of the U.S. central bank.
Dow closes 500 points lower as Warsh's first Fed meeting sets off surge in bond yields
Stocks fell on Wednesday, while Treasury yields surged, as investors grew uncertain over the path of monetary policy after several Federal Reserve officials indicated there could be a rate hike this year to tamp down on inflation. The Dow Jones Industrial Average fell 507.12 points, or 0.98%, after earlier hitting a fresh all-time intraday record — the index's third consecutive high. The 30-stock index closed at 51,492.55. The S&P 500 lost 1.21% and ended at 7,420.10. The Nasdaq Composite shed 1.34% and settled at 26,021.66. Major tech bellwethers led the losses, with Microsoft, Meta Platforms, Alphabet and Amazon all closing in the red.
Gold rose above $4,300 an ounce on Thursday, recovering losses from the previous session
Gold rose above $4,300 an ounce on Thursday, recovering losses from the previous session after President Donald Trump signed an interim agreement to end the conflict with Iran and reopen the Strait of Hormuz. Reports indicated that the deal includes the swift reopening of the strait and the removal of sanctions on Iranian oil exports, while negotiations on nuclear issues and potential additional economic incentives for Iran are set to continue. Meanwhile, gold tumbled nearly 2% on Wednesday after the US Federal Reserve signaled increasing support for interest rate hikes this year.
Crude oil fell below $75 per barrel on Thursday, extending its decline toward the lowest levels since early March
Crude oil fell below $75 per barrel on Thursday, extending its decline toward the lowest levels since early March following reports that the US and Iran digitally signed their interim peace agreement. A US official confirmed that the memorandum of understanding has taken effect, although it remains uncertain whether Iran has already started measures to fully reopen the Strait of Hormuz. According to reports, the deal includes the swift reopening of the key shipping route and the removal of sanctions on Iranian oil exports, while negotiations on nuclear matters and possible additional economic incentives for Iran are expected to continue. Market participants are also watching shipping firms that had largely suspended transit through the strait amid blockades imposed by both the US and Iran.
Trump and Iran's President Pezeshkian sign memorandum aimed to end war
President Donald Trump and Iranian President Masoud Pezeshkian on Wednesday digitally signed a memorandum of understanding aimed at developing a permanent peace deal to end the war between their two nations, officials said. The signing came three days after Vice President JD Vance and Iranian Parliamentary Speaker Mohammad Bagher Ghalibaf digitally signed the same document, and hours after Trump mused about whether it was a wise idea for him to personally sign the document. Trump signed the MOU before a dinner in Versailles, France, with French President Emmanuel Macron, France's first lady Brigitte Macron, Secretary of State Marco Rubio, and others, according to a video posted online by White House Deputy Chief of Staff Dan Scavino.
Chairman Warsh abstains from giving rate forecast as several members signal a hike in 2026
The Federal Reserve's latest projections pointed to one rate increase in 2026, though the outlook was complicated by the absence of a forecast from Chairman Kevin Warsh. Nine of 18 officials projected that the federal funds rate would end 2026 above its current range of 3.5% to 3.75%. However, the outlooks missed one participant, and Warsh confirmed in the news conference after the Fed meeting that he refrained from offering any forecast of his own. The median projection now calls for the federal funds rate to end 2026 at 3.8%, up from 3.4% in the Fed's March summary and a quarter percentage point above the current target range. The central bank left interest rates unchanged at the conclusion of Wednesday's meeting, the first gathering under Warsh. "I did not submit a dot for me. It's not helpful in the conduct of policy," Warsh said in the news conference.
Iran to define Strait of Hormuz administration with Oman and Gulf states, senior U.S. officials say
Iran and Oman will define how the Strait of Hormuz is administered in discussion with other Persian Gulf states under the agreement to end the war in the Middle East, senior U.S. officials told reporters Wednesday. Tehran and Washington are expected to formally sign a memorandum of understanding to end the war on Friday in Geneva. The U.S. officials, speaking on condition of anonymity to discuss the terms that hadn't been made public, read the contents of the MOU to reporters on a conference call. Under the MOU, Tehran will allow the safe passage of commercial ships without tolls for 60 days only. Iran will then "conduct dialog" with Oman "to define the future administration and maritime services" in Hormuz in discussion with the other Gulf states, according to the agreement.
Indian rupee poised to slip after hawkish Fed surprise opens door to rate hike
The Indian rupee is set to open weaker on Thursday after a hawkish surprise from the U.S. Federal Reserve boosted bets of an interest rate hike later this year. The rupee is expected to open in the 94.70–94.75 range on Thursday, traders said, after settling at 94.5250 in the previous session. Fed policymakers struck a more hawkish tone than expected late Wednesday, with nine of 18 projecting at least one rate hike in 2026. Economists had anticipated far fewer, with Goldman Sachs saying it expected around three members to signal a hike. Goldman Sachs further flagged the Fed's inflation outlook, noting the median projection for 2027 core PCE inflation (Q4/Q4) was set at 2.5%, above its 2.3% estimate.
Trump says Apple to partner with Intel on US chip design, production
U.S. President Donald Trump said in a Truth Social post on Thursday that Apple has agreed to work with Intel to design and manufacture its chips in the United States. A partnership with Intel helps Apple diversify its manufacturing base as it seeks additional chip capacity. The iPhone maker relies heavily on TSMC, whose advanced production lines are in high demand from AI chipmakers such as Nvidia and AMD. Intel reached a preliminary deal to make some chips for Apple after more than a year of discussions, the Wall Street Journal reported in May. Apple and Intel did not immediately respond to a Reuters' request for comments outside regular business hours. An Apple contract gives Intel a steady demand from one of the world's largest consumer electronics companies, boosting both its reputation and a manufacturing business that has lagged TSMC in recent years.
Nippon Steel sees strong American market lifting US Steel earnings
Nippon Steel, the world's No. 3 steelmaker, expects the American market to remain buoyant, supported by import tariffs and resilient demand, which could lift earnings at U.S. Steel beyond current forecasts, Vice Chairman Takahiro Mori said. "We are confident that U.S. Steel will be able to post profits in excess of 100 billion yen ($624 million) this year," Mori said, adding that the strong market outlook through 2027 suggested additional upside. He said U.S. Steel would generate an annual profit of 300 billion yen to 400 billion yen in the long run. Mori described U.S. conditions as highly favourable, with hot-rolled steel sheet prices above $1,200 per metric ton, more than double the level in Asia.
Johnson & Johnson to stay out of obesity drugs, focus on cancer, CEO says
Johnson & Johnson will not enter the obesity drug market, Chief Executive Officer Joaquin Duato said Tuesday. The company plans to concentrate on cancer and neuroscience instead. Duato made the comments during an interview with Carlyle Group cofounder David Rubenstein at the Economic Club of Washington, DC. The decision separates J&J from competitors working to develop or buy obesity treatments after successful weight-loss drugs from Eli Lilly and Novo Nordisk. "We are not going to be in the GLP-1 area," Duato said. He pointed to oncology and neuroscience as areas where the company can make a larger impact. The New Brunswick, New Jersey-based company wants to become the top cancer company globally. "Our goal is to be No. 1 by 2030," Duato said.
Aramco, seeking tens of billions of dollars, lines up more asset sales, sources say
Saudi Aramco is considering the sale of a stake in its sulphur business, three sources with knowledge of the matter told Reuters, extending a strategy of tapping its infrastructure assets to raise tens of billions of dollars. Aramco, the crown jewel of the world's largest crude exporter, has been seeking outside capital to fund the kingdom's ambitious diversification agenda amid mounting fiscal pressure. The oil giant has been actively seeking to sell assets, improve efficiency and cut costs, Reuters reported exclusively last year. The total value of assets from its vast infrastructure empire that it may tap for fundraising could reach around $50 billion, according to one of the sources and Reuters calculations.
