Downward trends dominate its stock markets Asia But also on the futures of US markets under the pressure of Donald Trump’s threats to attack Iran and warnings by the US Federal Bank (Fed) for rising inflation next time.
The shares have retreated as the US is wearing the possibility of immediate conflict with Iran, and Fed President Jerome Powell has warned of significant inflation in the future. At the same time, the dollar rose. MSCI’s regional stock index fell 1%, with shares falling in all areas in Asia.
The Chinese CSI 300 loses 0.84%, while the Japanese Nikkei 225 fell 0.94%, with Topix recording 0.52%. Asia Dow loses 1.45%, Hang Seng 2.06%, Shanghai 1.01%.
Futal fulfillment contracts for US stocks fell about 0.3%, as the S&P 500 closed with a slight change in the previous meeting. The dollar was reinforced against the main coins. Cash trading in public bonds is closed today (19.6.2025) due to US holiday. At the same time, international oil prices are rising, reaching $ 75.70 a barrel (+0.5%).
The climate became more skeptical after Bloomberg post, according to which senior US officials are preparing for a possible hit in Iran in the following days. The markets were already upset after the degradation of its Fed growth estimates this year and the forecast for higher inflation, stressing that the uncertainties due to duties complicate the central bank’s attempt to relax its policy.
In the goods, oil retreated after an unstable week of transactions, as the market focused on whether Donald Trump would sink the US into the conflict between Israel and Iran. Gold rose.
“Immediate US involvement in an attack on Iran would almost certainly cause a significant increase in oil prices.”said Manish Bhargava, chief executive of Singapore -based Straits Investment. “This explosion would exacerbate global inflation, making the efforts of central banks – like the Fed – to control it more difficult and possibly delaying interest rates.”
Fed voted unanimously yesterday (18.6.2025) to maintain the reference rate. Powell noted that duty increases are likely to raise prices and added that the impact on inflation could be more persistent. He refused to say whether he would remain after the end of his term. “Finally, the cost of duties must be paid and some of it will fall to the end consumer,” Powell said. “We know this is coming and we just want to see a little of it before we make early crises,” he added.
While the average expectation for two interest rate cuts in 2025 did not change, several officials reduced their forecasts. Seven officials no longer provide any interest rates this year, compared to four in March. Two others highlighted one reduction this year.
Gen left his first profits and negotiates slightly lower than the dollar. The Australian dollar remained weak, as Australia’s economy has surprisingly reduced jobs in May, reinforcing the assumption that the central bank should further reduce interest rates.
Elsewhere in Asia, Thailand is facing a new political uncertainty after the second largest party of Prime Minister Paetonngar Sinawiatra’s departure from the government coalition. The Taiwan Central Bank is expected to maintain its reference rate for a fifth consecutive quarter, while the Philippines are likely to decline.
Later today, the central banks of Switzerland, Norway, Turkey and the United Kingdom will also issue interest rates decisions.