Asian equities post mixed results as U.S.-Iran resume ceasefire

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Asian equities posted mixed results in trading hours on Monday as investors show skepticism between a fragile U.S.-Iran ceasefire and an AI trade that is mounting cost and supply chain pressures on more established verticals in the technology sector. 

According to CNBC, notable drops were seen across the Nikkei 225, the Topix, and the Kospi of 0.8%, 0.24%, and 1.48% respectively.

U.S. stock futures climbed over reports that the U.S. and Iran were not engaging in anymore attacks ahead of the conflict. The update comes after the majority of U.S. stock indexes bled in value on Friday. 

• S&P 500: ▼ -0.72%
• NASDAQ: ▼ -1.38%
• Dow Jones: ▼ -0.29%
• Russell 2000: ▲ +0.31%

Oil markets—one of the more sensitive asset classes to the middle east conflict—showed a slight rebound as investors price in a more uncertain geopolitical reality, one that has risk attached to it as the ceasefire brokered between the U.S. and Iran has been violated multiple times with hostile action taken from both sides. 

• WTI Crude: ▲ +0.88%
• Brent Crude: ▲ +0.49%
• Murban Crude: ▼ -3.65%
• Natural Gas: ▲ +0.12%

(Source: Oilprice.com)

Oil prices still remain well below the $100 highs seen at the start of the U.S.-Iran conflict. (Source: AA)

Gold remains muted in price movement, hovering around the $4,000 mark. Despite its sinking to multi-month lows (Source: investing.com), a long-term price analysis shows that the safe haven asset class has had a strong bull run over the past 4 years starting from a price level of $1,707 per ounce and now trading at $4,000 per ounce, according to analysis conducted by SGFX research desk.

Summary

Recent developments show the U.S.-Iran situation is still fraught with breaks in the ceasefire. In the view of SGFX research desk, stock markets can be subject to additional risk if the U.S. and Iran continue to remain hostile. 

Research references

• Latest Oil Market News and Analysis for June 29 - Bloomberg
• Stock futures today: Live updates
• CNBC data
• TIKR terminal data
• US and Iran Agree to Halt Attacking Each Other Ahead of Talks - Bloomberg
• Oil prices surpass $100 per barrel for 1st time since 2022 over concerns Iran war disrupting supply
• Gold Falls to an 8-Month Low: This May Not Be the Bottom | Investing.com

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