A fresh bout of tit-for-tat attacks between the US and Iran has upended the tenuous ceasefire and clouded long-term peace prospects in the Middle East. The Strait of Hormuz, a key waterway for the transport of Middle Eastern oil shipments, remains in focus.
Global Market Reaction
While global markets broadly took the latest US attacks on Iran in stride, oil prices rose 2% as investors fretted about a slower recovery of supply from the Middle East. The US reimposed crude sales sanctions on Iran, adding to those worries.
US 10-year Treasury yields climbed about 3 basis points to a one-month high of 4.565%, with higher oil prices raising inflation risks. The spotlight will be on the minutes of the Federal Reserve’s June policy meeting later on Wednesday as traders gauge the mood and tone of policymakers.
South Korea’s SK Hynix launched a U.S. share sale to raise 43 trillion won on Monday, with the stock due to start trading on Friday, in what will be another test of investor confidence in the sector. The KOSPI index dropped another 5%, leading to a short halt in trading activated by the stock exchange.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
