Global Markets:
- Asian Stock Markets : Nikkei down 3.38%, Shanghai Composite up 0.15% Hang Seng down 0.24% ASX down 0.47%
- Commodities : Gold at $4,735.44 (2.83%) Silver at $74.343 (4.42%), Brent Oil at $107.15 (-1.45%), WTI Oil at $93.79 (-1.85%)
- Rates : US 10-year yield at 4.272, UK 10-year yield at 4.8480, Germany 10-year yield at 2.9524
News & Data:
- (GBP) Official Bank Rate 3.75% to 3.75% expected
- (USD) Unemployment Claims 205K to 215K expected
- (EUR) Main Refinancing Rate 2.15% to 2.15% expected
Markets Update:
Asia-Pacific markets traded mixed on Friday after a volatile Wall Street session, as escalating tensions in the Middle East and energy supply disruptions unsettled investors.
Iran struck a major gas facility in Qatar on Thursday, retaliating against Israel’s earlier attacks on its South Pars field. QatarEnergy CEO Saad al-Kaabi said the damage could cut 17% of the nation’s LNG export capacity for up to five years. The continued exchange of attacks on critical oil and gas infrastructure pushed energy prices higher.
U.S. natural gas rose 1.5% to $3.112 per MMBtu, while gasoline futures climbed nearly 1% to a four-year high. However, oil prices pulled back, with Brent crude falling 2% to $106.45 per barrel and WTI declining 1.56% to $94.64. Saudi Arabia warned prices could surge above $180 if disruptions persist.
Precious metals were also hit, with gold and silver dropping sharply before trimming losses. Ed Yardeni noted the sell-off in gold suggests panic selling, but expects stabilization soon.
Leaders signaled restraint, with U.S. President Donald Trump ruling out ground troop deployment and Israel indicating it would avoid further strikes on Iranian energy assets. Meanwhile, major U.S.-aligned nations pledged support to ensure safe passage through the Strait of Hormuz.
Regionally, markets were mixed: Australia and Hong Kong declined, while China and South Korea advanced. Wall Street closed lower overnight, though futures showed modest recovery.
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