Asian shares establish in the midst of anticipation of the development of the conflict between Israel and Iran
US equity futures have fallen and oil prices have risen in Asian trade, after US President Donald Trump invited Iranian capital Tehran, in statements that contradict the previous optimism that the tension between Israel and Iran will not escalate to a greater conflict. Gold also climbed after Trump’s statements he posted on social media from the top of the group of seven in Alberta. It was not clear what Trump was referring to, but hours before he said Iran wanted to negotiate. The White House has announced that the US president will shorten his visit to the Seven Summit group and return to Washington. Asia’s equity index has recorded a slight change as the Japanese and South Korean stocks have risen, while the shares in Hong Kong and China fell. Optimism returned to Wall Street on Monday, which resulted in the ‘S&B 500’ rising by about 1% to exceed the level of 6,000 points again. “Generally, stocks have shown the ability to withstand the recent news of the Middle East, suggesting that the market realizes that such previous events were often limited and short -term. With the exception of gold, there was no fixed pattern in the performance of asset categories to similar incidents,” says Billy Lyong, the investment strategy in Global X ETFs. Several signals about the power of the US economy. There were various references to the question of whether investors would trust the US economy, as long -term bonds have continued their poor performance, despite the sale of 20 years to value of $ 13 billion with a return for expectations, which is a noticeable improvement compared to last month’s auction. The dollar has risen against most of the currencies of countries. Trump previously said that Iran wanted to talk about the calm of the conflict with Israel, even in light of the continued exchange of strikes between the two parties for the fourth consecutive day. When asked if the United States would intervene militarily, the US president said he did not want to talk about it. The outbreaks of clashes between Israel and Iran caused the disruption of the momentum that urged the S&B 500 to approach its previous standard levels. While the markets initially adopted a cautious situation and avoided the risk, the vote later improved with speculation that the attacks would not expand to include other parties. “The focus will remain on the geopolitical headings, but as long as the conflict between Israel and Iran is limited, it is unlikely to have a fundamental impact on the markets,” Tom Jesse of the Sevens report said. The mediator dropped to less than $ 70 on Monday, but returned on Tuesday to reach about $ 73. It is noteworthy that the producers of the Middle East export about one fifth of the daily world production of oil through the narrow “street of hormuz”, and prices can rise significantly if Tehran tries to hinder the consignments through this important course. “Oil prices have risen due to fears associated with supplies, but the influence on Asia is supposed to be due to the low oil burden compared to the previous and moderation of inflation.” They added: “But if oil prices are over $ 85 a barrel and the US dollar is rising sustainably, it could slow down the reduction of interest rates.” Surgy after the decisions of the central banks, investors in Asia, will monitor the development of the group group summit in Alberta, Canada, where President Trump and Japanese Prime Minister Shighgero Ishiba have not reached an agreement on a commercial package. This failure has left Japan closer to a possible economic stagnation, amid the continued effects of US drawings on the economy. On the other hand, British Prime Minister Kiir Starmer has entered into an agreement with Trump to apply the trade conditions released last month, which will reduce US customs duties on large British exports, and to increase British shares from some US agricultural products. On the other hand, the Bank or Japan is expected to keep interest rates unchanged during its two -day meeting, which concludes on Tuesday. Interest will focus on reviewing the mortgage purchase plan, after almost a year after the start of reducing its public budget, according to the estimates of “Bloomberg Economics”. As far as Wall Street is concerned, the focus will be turned into a federal reserve decision on Wednesday, as expectations indicate that the policy of waiting to change interest rates is fulfilling. Investors are looking forward to the statements of the bank president Jerome Powell to get indicators about the possible time of any future move. David Doyle of the “Makari” group said: “Powell may describe the recent developments in inflation as encouraging, but this will reduce its importance as a result of the ambiguity caused by fees, financial policies and the recent rise in oil prices due to geopolitical developments.” He added: “Finally, the risks of market prices for 2025 are in a strict direction to the statement.”