Daily Outlook

Stocks, Bonds Edge Up; Oil Climbs on Iran Tensions

Stocks, Bonds Edge Up; Oil Climbs on Iran Tensions

Stocks edged higher on Monday as investors weighed mounting geopolitical risks and geared up for the high-stakes meeting between Presidents Donald Trump and Xi Jinping later this week. Oil climbed as the U.S. said it was planning fresh sanctions on Iran.

The Stoxx Europe 600 Index advanced, with rising retailers helping outweigh declines for carmakers. S&P 500 futures gained after the gauge slipped on Friday from an all-time high. Shares saw modest increases across most major Asian markets. The dollar dipped, Treasuries were flat, and European bonds ticked higher. The Turkish lira jumped after an opposition candidate won the redo of Istanbul’s mayoral race.

Investors are weighing the Middle East situation alongside a dovish shift from major central banks and the ongoing trade tensions between the U.S. and China. Next up comes a speech from Federal Reserve Chair Jerome Powell on Tuesday, then the Trump-Xi tete-a-tete on the sidelines of the Group of 20 summit in Japan at the end of the week.

Futures on the S&P 500 Index gained 0.4% as of 8:09 a.m. London time. The Stoxx Europe 600 Index climbed 0.2%. The Shanghai Composite Index increased 0.2%, hitting the highest in almost eight weeks with its sixth straight advance. The MSCI Emerging Market Index advanced 0.1%, the highest in almost seven weeks. West Texas Intermediate crude gained 1.3% to $58.15 a barrel, the highest in almost four weeks. Iron ore fell 0.6% to $110.80 per metric ton, the largest fall in a week.

Stocks, Bonds Edge Up; Oil Climbs on Iran Tensions, Bloomberg, Jun 24

Article Rating