As Futures Rise & Oil Slips, Stock Selloff Lessens – Asia Market Wrap
The largest monthly selloff in world stocks since 2022 has eased after the US granted Iran more time to strike an agreement on ending the month-long war. Oil prices fell.
US equity-index futures advanced 0.6%, indicating a recovery after the actual gauges fell to their lowest level since September. That happened after Trump extended his deadline for Iran to agree to a cease-fire agreement by ten days. European equities were also expected to open 0.7% higher on Friday. Asian equities recovered previous losses to fall 0.2%.
The MSCI All Country World Index is still on track for its worst month in more than three years, as the Middle East crisis raises concerns about higher inflation and reduced economic growth. Some of those concerns were alleviated as Brent fell 0.5% to about $107 per barrel on Friday, putting the commodity on track for its first weekly loss since mid-February.
Asia’s benchmark stock index has down 10% this month, while gold has fallen around 15%. Brent crude has risen by nearly 48% since the battle began at the end of February.
In other market developments, the yen rose against the Dollar as Finance Minister Katayama stated that the authorities can take measures to counter foreign exchange fluctuations, including strong acts. Bitcoin traded under $69,000.
