- Asian Stocks Climb as Israel-Iran Truce Holds: Markets Wrap
Stocks in Asia advanced as the Israel-Iran truce appeared to hold and Treasury traders ramped up bets for US
interest rate cuts. MSCI’s gauge for Asian equities gained 0.3% early on Wednesday following a more than 2%
rise in the previous session, when US President Donald Trump announced a ceasefire between the Middle East
rivals. US equity futures dipped after the S&P 500 climbed 1.1% and the Nasdaq 100 rose 1.5% on Tuesday,
notching its first record since February. Treasuries and a gauge of the dollar steadied. The benchmark 10-year
yield shed five basis points on Tuesday after Federal Reserve Chair Jerome Powell said “many paths are
possible” for monetary policy, with data showing weakening consumer confidence. Traders continued to keep
a very close eye on the Middle East as the nascent peace deal remains precarious. Iran and Israel appeared to
honor the agreement after Trump lashed out at both side for early breaches. - Dow jumps 500 points, oil prices crater as investors bet Israel-Iran truce will hold
Stocks rose while oil prices plummeted again on Tuesday, as investors bet that a delicate ceasefire between
Israel and Iran will hold. The Dow Jones Industrial Average climbed 507.24 points, or 1.19%, and closed at
43,089.02. The S&P 500 gained 1.11% to end at 6,092.18. The broad market index is now about 0.9% away
from its 52-week high. The Nasdaq Composite advanced 1.43%, settling at 19,912.53. The Nasdaq 100 added
1.53% for a record close of 22,190.52. - Oil tumbles for a second day, loses 6% as Iran-Israel ceasefire eases supply concerns
Oil prices tumbled for a second day Tuesday, as the market bet that a ceasefire between Israel and Iran would
hold and the risk of a major crude supply disruption had faded. U.S. crude oil settled down 6% at $64.37 a
barrel, while the global benchmark Brent fell 6.1%, to $67.14. Prices closed 7% lower on Monday after Iran did
not target energy infrastructure in response to the U.S. bombing its key nuclear sites. Earlier Tuesday,
President Donald Trump said China can keep buying oil from Iran, in what seemed like a sign that the U.S. may
soften its maximum pressure campaign against the Islamic Republic. “China can now continue to purchase Oil
from Iran,” Trump said in a social media post. “Hopefully, they will be purchasing plenty from the U.S., also. It
was my Great Honor to make this happen!” But a senior White House official told CNBC that Trump “continues
to call on China and all countries to import our state-of-the-art oil rather than import Iranian oil in violation of
U.S. sanctions.” Trump threatened in May to bar any country that buys Iranian oil from doing business with the
U.S. China purchases the vast majority of the 1.7 million barrels per day (bpd) that Iran typically exports,
according to data from Kpler. Trump was saying that China could continue buying Iran’s oil because the Strait
of Hormuz would remain open due to the ceasefire, the White House official clarified. The strait is a narrow
waterway between Iran and Oman that is used to transport 20% of the world’s oil. Investors worried that Iran
might attempt to close the strait during the conflict with Israel. - Gold falls 2% as Iran-Israel ceasefire weighs on safe-haven appeal
Gold fell 2% to hit an over two-week low on Tuesday as the announcement of a ceasefire between Iran and
Israel dented safe-haven demand for bullion. Spot gold fell 1.5% to $3,316.80 an ounce, after earlier dropping
over 2% to its lowest level since June 9. U.S. gold futures settled 1.8% lower at $3,333.9. “The de-escalation of
tensions in the Middle East is the primary factor that’s weighing on gold. The safe-haven bid has diminished
and the market is in more of a risk-on mode,” said Peter Grant, vice president and senior metals strategist at
Zaner Metals. “We’ve got pretty good support around $3,300 and then even better support probably at
$3,250.” Global shares surged and the dollar dropped on Tuesday after news of the ceasefire between Israel
and Iran, while markets shrugged off what U.S. President Donald Trump called violations by both sides. Israeli
Defense Minister Israel Katz had said earlier in the day that he had ordered the military to mount new strikes
on targets in Tehran, in response to what he said were Iranian missiles fired in a “blatant violation” of the
ceasefire. “ Spot silver fell to its lowest since June 5, slipping 0.8% to $35.83 per ounce. - Powell emphasizes Fed’s obligation to prevent ‘ongoing inflation problem’ despite Trump criticism
Federal Reserve Chair Jerome Powell on Tuesday said he expects policymakers to stay on hold until they have
a better handle on the impact tariffs will have on prices. The cautious tones could further antagonize President
Donald Trump, who has ramped up his long-standing criticism of Powell. Powell will present his speech, along
with the Fed’s monetary policy report, first to the House Financial Services Committee on Tuesday morning,
then the Senate Banking Committee a day later. - China’s Li urges not to turn trade into a political or security issue
Chinese Premier Li Qiang on Wednesday called on other countries to collaborate on trade, despite rising tariffs
and other barriers. “Globalization will not be reversed,” he said through an official English translation, as he
called on all sides not to turn trade into a political or security issue. Engaging in the international economy is a
way of “reshaping the rules and order,” Li added, calling on countries to keep to the “right” path. Li did not
comment specifically on U.S. trade tensions or the Israel-Iran conflict. He was speaking at the opening plenary
of the World Economic Forum’s annual conference in China, often dubbed “Summer Davos.” Describing Li’s
comment on “reshaping the rules and order” as “very interesting,” Adam Tooze, professor of history at
Columbia University, said: “I think what we’re going to see is a pluralization.” - Trump and the U.S. are totally committed to NATO, alliance chief says to reassure allies
The U.S. and President Donald Trump are totally committed to NATO, the military alliance’s chief said on
Tuesday, looking to reassure allies following concerns that Washington could abandon the Western military
bloc due to frustration over uneven defense spending. “There is total commitment by the U.S. president and
the U.S. senior leadership to NATO,” NATO Secretary-General Mark Rutte said Tuesday morning, as the summit
kicked off in The Hague Netherlands. “However, it comes with an expectation. And the expectation is that we
will finally deal with this huge irritant, which is that we are not spending enough as Europeans and Canadians,”
Rutte told a public forum at the summit. “They want us to equalize with what the U.S. is spending,” he added,
saying it was not only fair to do so, but also necessary amid the continuing threat from Russia. Tensions
between Washington, Canadian and European allies’ defense spending have overshadowed NATO for a
number of years, however ahead of this summit, members agreed to increase defense spending to 5% of gross
domestic product (GDP) by 2035. - Shares of Mastercard and Fiserv both climbed after deepening a partnership to integrate Fiserv’s planned
FIUSD stablecoin across a range of Mastercard products and services
Mastercard says people and businesses can use the new, programmable, blockchain-based token across more
than 150 million merchants. Companies to explore enabling merchants to settle in FIUSD, connectivity to
Mastercard multi-token network, and issuing stablecoin-powered cards. The announcement “validates our
view that V and MA will have a key role to play even if stablecoin adoption gains ground,” KBW analyst Sanjay
Sakhrani wrote in a note to clients. “Being centrally situated in the payments ecosystem and a trusted party
for banks, merchants and consumers, makes the networks well positioned to add value and play a critical role
in driving adoption of the stablecoin ecosystem, despite beliefs that stablecoin is a risk to their business model.” - Uber Technologies shares rose 7.5% after the ride-hailing company said in a press release that it will be
partnering with Alphabet’s Waymo to offer ride-sharing through autonomous vehicles in Atlanta
This makes it the second market, after Austin, where the two companies are teaming up instead of competing
against each other. In addition, Lime, the Uber-backed electric bike startup, has hired investment banks to
prepare for a US initial public offering, according to a report from Reuters. - Coinbase Global Inc (COIN US)
Shares of Coinbase, the crypto exchange operator, rose 12.1% as cryptocurrencies climbed, demonstrating the
digital asset market’s reactive nature to global geopolitical events and leading other providers of crypto trading
services higher. Bitcoin rallied to over $106k. - Carnival Corp. shares rose 6.9% after it raised its full-year profit outlook as cruise demand has shrugged
off the volatile economic and geopolitical backdrop
Earnings will be around $1.97 per share this year, the company said, up from its previous view of $1.83 per
share. Analysts had expected $1.85 per share. The cruise operator also hiked its targets in March after a strong
start saw impressive booking growth with record pricing. The industry appears to be rebounding from earlier
worries that demand was softening for vacations. Cruise businesses are also insulated during downturns by
customers increasingly booking further in advance, drawn to tickets that offer significant discounts relative to
other travel options. “Close-in demand and onboard spending levels were incredibly strong for second quarter
sailings and our booking curve continues to be the furthest out on record,” Chief Executive Officer Josh
Weinstein said. Cruisers were more hesitant to book trips in April following President Donald Trump’s broad
based tariff program, though demand returned in the following months, Weinstein said. Since then, customers
have continued to spend even as the geopolitical tension in the Middle East has intensified. “When we look at
June, the onboard spending has continued to be robust,” David Bernstein, Carnival’s chief financial officer, said.
The company hasn’t seen any change in booking or cancellation trends in response either, he said. Carnival
expects net yields — an industry measure for sales growth — to expand 5% this year, up from its previous view
of 4.7% as customers continue to book trips at higher prices. The cruise liner should also experience an
additional boost from the opening of its newest private Bahamian island in July. Trips to that location have
garnered premium prices and it could offer returns beyond what a new vessel offers over time, Bernstein said.
