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What is the story about?
Asian shares edged higher on Tuesday even as crude oil prices gained and bonds dropped after US President Donald Trump cast doubts regarding the Iran ceasefire.
Asian stocks were up 0.4% near their record as traders remained bullish on AI trade. South Korea led gains as investors bet the country’s chipmakers, such as Samsung Electronics Co. and SK Hynix Inc., will benefit from the global AI buildout.
Brent edged above $104 a barrel as stalled negotiations pointed to a continued closure of the vital waterway. The higher oil prices pushed down Treasuries, with the 10-year yield holding at 4.42%. Government bonds of similar maturity in Japan and Australia dropped as well. Gold traded over $4,750 an ounce and the dollar held its gains from the previous session.
Rising Middle East tensions are set to test the rally in global equities, where strong US earnings and the revival of the AI trade have fueled a fresh round of upgrades to Wall Street’s year-end S&P 500 targets. A key test comes with Tuesday’s inflation reading, which will show how much of the war-driven price pressures are feeding through and could shape the outlook for interest rates.
The ceasefire in the Middle East appeared to waver, with President Donald Trump calling Iran’s response to his peace proposal a “piece of garbage” and that he “didn’t even finish reading it.”
Trump didn’t indicate whether the US would resume military attacks on Iran as he previously has threatened if the Islamic Republic’s leadership didn’t agree to his terms. Trump told Fox News earlier on Monday that he’s looking at reviving a plan to escort ships through the Strait of Hormuz.
Traders will also be paying attention to the pound and gilt markets with Keir Starmer facing growing pressure to step down as prime minister. Focus is also on the rupee with the Indian government considering emergency steps to shore up foreign-exchange reserves, including curbing non-essential imports like gold and electronic goods.
While the Iran conflict has dragged on, the strength of first-quarter earnings surprises has now led multiple Wall Street strategists to raise their full-year targets on the S&P 500.
CFRA upped their target on resilient consumer spending and AI-related investment, while Yardeni Research Inc. now has the highest estimate on Wall Street among strategists tracked by Bloomberg.
Still, some on Wall Street are also concerned that elevated oil prices and fears about potential shortages could derail the rally.
With inputs from Bloomberg
Asian stocks were up 0.4% near their record as traders remained bullish on AI trade. South Korea led gains as investors bet the country’s chipmakers, such as Samsung Electronics Co. and SK Hynix Inc., will benefit from the global AI buildout.
Brent edged above $104 a barrel as stalled negotiations pointed to a continued closure of the vital waterway. The higher oil prices pushed down Treasuries, with the 10-year yield holding at 4.42%. Government bonds of similar maturity in Japan and Australia dropped as well. Gold traded over $4,750 an ounce and the dollar held its gains from the previous session.
Rising Middle East tensions are set to test the rally in global equities, where strong US earnings and the revival of the AI trade have fueled a fresh round of upgrades to Wall Street’s year-end S&P 500 targets. A key test comes with Tuesday’s inflation reading, which will show how much of the war-driven price pressures are feeding through and could shape the outlook for interest rates.
The ceasefire in the Middle East appeared to waver, with President Donald Trump calling Iran’s response to his peace proposal a “piece of garbage” and that he “didn’t even finish reading it.”
Trump didn’t indicate whether the US would resume military attacks on Iran as he previously has threatened if the Islamic Republic’s leadership didn’t agree to his terms. Trump told Fox News earlier on Monday that he’s looking at reviving a plan to escort ships through the Strait of Hormuz.
Traders will also be paying attention to the pound and gilt markets with Keir Starmer facing growing pressure to step down as prime minister. Focus is also on the rupee with the Indian government considering emergency steps to shore up foreign-exchange reserves, including curbing non-essential imports like gold and electronic goods.
While the Iran conflict has dragged on, the strength of first-quarter earnings surprises has now led multiple Wall Street strategists to raise their full-year targets on the S&P 500.
CFRA upped their target on resilient consumer spending and AI-related investment, while Yardeni Research Inc. now has the highest estimate on Wall Street among strategists tracked by Bloomberg.
Still, some on Wall Street are also concerned that elevated oil prices and fears about potential shortages could derail the rally.
With inputs from Bloomberg
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