Daily News 18th Aug 26
Daily News
Dow Sheds 270 Points as Oil Tops $85 on Iran Ceasefire Collapse; Gold Slips Below $4,400; Kospi Jumps 1.9% While Nikkei Slides
18 August 2026
Today in Brief
Asia-Pacific markets traded mixed Tuesday, with South Korea's Kospi jumping 1.9% while Japan's Nikkei 225 fell 0.94%, Australia's S&P/ASX 200 edged 0.19% higher, Hong Kong's Hang Seng slid 0.19% and the CSI 300 lost 0.12%. U.S. stocks fell Monday as the S&P 500 dropped 0.52% to 7,745.06, the Nasdaq Composite eased 0.32% to 26,644.91, and the Dow Jones Industrial Average shed 272.63 points, or 0.51%, to 53,459.78, as the U.S.-Iran ceasefire expired with negotiations stalled and President Trump warning he would strike Oman "if it gets in the way." Gold eased below $4,400 an ounce Tuesday as investors locked in profits, while crude oil climbed above $85 per barrel for a third straight session on fading prospects for an extended peace deal.
In other news: a cargo vessel was struck by a projectile in the Strait of Hormuz, causing a crew casualty, as an Iranian military spokesperson warned vessels would "find several beautiful holes in their hulls"; South Korea's President Lee Jae Myung said the country must prepare for a "worst-case scenario" after Trump ordered reduced joint military drills with Seoul; Japan's 10-year government bond yield hit a three-decade high; India opened a tax amnesty scheme for small taxpayers with undisclosed foreign assets; Tesla is preparing a Cybercab public launch in Austin starting with employee rides; Meta's trial over allegations it fostered addictive behaviour in teens opened in California; Germany's competition authority said Apple will change its app data consent rules; and India's National Stock Exchange is seeking a valuation of up to $55 billion in its planned IPO.
In Asia, South Korea's benchmark Kospi jumped 1.9% Tuesday
In Asia, South Korea's benchmark Kospi jumped 1.9% Tuesday, while Japan's Nikkei 225 fell 0.94%. Australia's S&P/ASX 200 edged 0.19% higher. Hong Kong's Hang Seng Index slid 0.19%, while the CSI 300 lost 0.12%. The moves in U.S. futures follow a losing session for stocks, as oil prices climbed more than 2% on uncertainty around a U.S.-Iran ceasefire that expired Monday. Negotiations between the countries have stalled, and President Donald Trump said he would attack Oman "if it gets in the way."
Dow loses more than 270 points as oil prices pressure stocks amid rising Iran tensions
The S&P 500 fell on Monday, while oil prices rose, as investors weighed tensions in the Middle East. The broad market index fell 0.52% to end at 7,745.06, while the Nasdaq Composite moved 0.32% lower to 26,644.91. The Dow Jones Industrial Average shed 272.63 points, or 0.51%, to close at 53,459.78. Eyes were focused on the conflict in the Middle East, with the ceasefire between the U.S. and Iran expiring Monday as negotiations between the two sides have stalled. Iran has ruled out talks to extend the memorandum of understanding, state news agency Tasnim has reported. A senior Iranian official told Reuters Monday that the country would shift to an offensive posture if diplomacy with the U.S. fails, while President Donald Trump told Fox News Monday that the U.S. would bomb Oman if it "gets in the way."
Gold eased below $4,400 an ounce on Tuesday, reversing earlier gains
Gold eased below $4,400 an ounce on Tuesday, reversing earlier gains amid a broad pullback across the metals market as investors locked in profits following a strong rally. Metals also faced pressure from rising oil prices, which kept inflationary risks and interest rate concerns in focus. The moves came as prospects for a new agreement between the US and Iran dimmed after President Donald Trump said he was not interested in extending the interim peace deal. Meanwhile, gold continued to find support from fading expectations for a Federal Reserve rate hike following a string of weak US economic data. Markets now expect the Fed to keep policy unchanged in September and are no longer fully pricing in a rate increase by year-end, unlike just a week ago. Bullion also remained supported by stronger investment demand and continued central bank purchases, particularly from China.
Crude oil climbed above $85 per barrel on Tuesday, rising for a third consecutive session
Crude oil climbed above $85 per barrel on Tuesday, rising for a third consecutive session as prospects for a new agreement between the US and Iran weakened after President Donald Trump said he was not interested in extending the interim peace deal. The memorandum of understanding signed in June, which was intended to give both sides 60 days to negotiate a longer-term peace agreement, officially expired on Monday. Meanwhile, Iran and Oman continue to negotiate an arrangement for managing shipping through the Strait of Hormuz, although the US is not involved in the talks. Washington is unlikely to back any deal that fails to ensure unrestricted passage through the strategically vital shipping route.
Ship attacked in Hormuz Strait as U.S.-Iran ceasefire expiry risks prolonged conflict
A cargo vessel was struck by a projectile while transiting the Strait of Hormuz, the U.K. Maritime Trade Operations agency said Tuesday, signaling persisting navigation risks in the waterway as Washington and Tehran harden their positions. The attack caused damage to the engine room and resulted in a crew casualty, the maritime agency said, adding that the remaining crew were being assisted by the Omani Coast Guard. The incident came after an Iranian military official repeated threats that the Islamic state won't back down over the Strait of Hormuz. Fox News reported Tuesday that Ebrahim Zolfaghari, Iranian military spokesperson, said vessels attempting passage through the strait will "find several beautiful holes in their hulls."
South Korea must brace for 'worst-case scenario,' President Lee says, as Trump cuts military drills
South Korean President Lee Jae Myung said Tuesday that maintaining peace was "most important" for the country, but it needs to prepare for the "worst case scenario." His comments come after U.S. President Donald Trump ordered Defense Secretary Pete Hegseth to "substantially reduce" joint drills with Seoul so as to not "send a signal that is totally inappropriate and hostile" to North Korea. In a Truth Social post Sunday stateside, Trump cited his "very good" relationship with North Korean leader Kim Jong Un, and described the country as "unthreatening and respectful."
Japan's 10-year yield hits three-decade peak on inflation worries
Japan's benchmark 10-year government bond yield climbed to a three-decade high on Tuesday as a stalemate in the Middle East conflict stoked inflation worries and reinforced speculation about a near-term Bank of Japan interest-rate increase. The 10-year JGB yield added 1.5 basis points (bps) to 2.935% as of 0415 GMT, after earlier touching 2.945% for the first time since September 1996. Yields rise when bond prices fall. The yield retreated from the day's high following a solid auction of 5-year JGBs, which saw the highest level of demand since June 2025 as the higher yield on offer attracted buyers. Following the auction result, the 5-year yield reversed an early rise to decline 1 bp to 2.15%. It had started the day by rising 2 bps to a record 2.18%.
India opens tax amnesty scheme for small taxpayers with undisclosed foreign assets
India's tax amnesty scheme for small taxpayers to declare certain undeclared foreign assets of up to 50 million rupees ($523,889) opens on Sunday and will be available until December 31, the government said. Here are more details of the scheme India's finance minister announced the scheme in her February 1 budget, targeting small taxpayers such as students and non-resident Indians. Taxpayers with undisclosed foreign income of up to 10 million rupees ($104,778) can use the scheme until December 31, 2026, by paying 30% tax and an equal amount as a penalty. Taxpayers who acquired foreign assets worth up to 50 million rupees that were already taxed but not reported in their tax returns can also use the one-time scheme by paying 100,000 rupees ($1,048). The market value of assets would be calculated as of March 31, 2026.
Tesla prepares for Cybercab launch in August starting with rides to employees
Tesla has told employees it is gearing up for a public launch of Cybercab, starting with a rollout in Austin, Texas, as soon as this month, the Information reported on Monday, citing people with knowledge of the plans. Cybercab, a purpose-built autonomous vehicle without pedals or a steering wheel, is crucial to Tesla's robotaxi ambitions, as the company is planning to eventually deploy the vehicle for its autonomous ride-hailing service. Here are a few details from the report Tesla has told staff that it plans to begin the Cybercab rollout by offering rides to its employees on public roads and then incorporate Cybercabs into its robotaxi service in Austin a few days later, according to the report. The company has been preparing for a launch with steps including test driving, offering employee rides on private roads and conducting training with local first responders in recent weeks, the report said. Tesla did not immediately respond to a Reuters request for comment.
Meta faces 'astronomical' consequences as legal fight reaches critical moment in California
If New Mexico created the blueprint for taking on Meta, California could determine the company's fate when it comes to critical changes at Facebook and Instagram. Opening arguments begin Tuesday in the trial that California Attorney General Rob Bonta is co-leading against Meta, following a litany of allegations that the company fostered addictive behaviour in teens and children. The jury was seated last week in Oakland's federal courthouse. The trial involves a coalition of 29 state attorneys general in a unified case against Meta that was brought in 2023, and will be argued by lawyers representing California, Colorado, New Jersey and Kentucky.
Apple to change app data consent rules, German regulator says
Apple will change rules governing how app developers can use personal data for targeted advertising on iPhones and iPads, Germany's competition authority said on Monday, closing a years-long investigation. The Federal Cartel Office found that Apple's App Tracking Transparency framework gave its own apps more favourable consent prompts than those of third-party developers, potentially breaching competition rules. Apple has four months to implement the changes after the decision is served. Commitments run for seven years and will be monitored by a trustee. Under the commitments, consent pop-ups for third-party apps must be redesigned to remove discouraging language and symbols, and made visually and linguistically neutral.
India's NSE seeks valuation of up to $55 bln in planned IPO
India's National Stock Exchange is seeking a valuation of as much as 5.26 trillion rupees ($55 billion) in its planned initial public offering, with the exchange marketing shares at 2,000 to 2,100 rupees apiece, Bloomberg News reported on Tuesday, citing people familiar with the matter. The world's largest derivatives exchange by trading volume has completed most of its global investor roadshow, with meetings in the Middle East still pending, the report said. About 120 global investors, including BlackRock, Capital Group and GQG Partners, attended meetings across major financial centres.
