Bonds & Stocks Drop as Oil Remains Over $100 on Iran – Asia Market Wrap
Stocks and bonds fell as stalled US-Iran talks and the continuing closure of the Strait of Hormuz pushed oil prices higher, dampening risk sentiment following Wall Street’s record rally.
MSCI’s Asia Pacific equities index declined 0.6%, with decliners outnumbering advancers three to one, as increased oil prices dimmed the outlook for economic growth. Futures contracts for the S&P 500 Index and the tech-heavy Nasdaq 100 both fell 0.5% after the underlying gauges closed at all-time highs on Wednesday, thanks to strong corporate profits and the continuation of the US-Iran ceasefire. European shares were expected to open 1% lower.
Brent crude rose 1.1% to $103 a barrel, putting it on course for a fourth consecutive day of gains due to stalled US-Iran talks. The standard has risen 70% this year, with the majority of the increase occurring when the Middle East crisis began in late February. Bonds slumped as rising oil prices fuelled inflation fears.
Treasuries were set for a fourth day of tosses, with the 10-year yield rising 2 bps to 4.32%, while the Dollar gained against most of its key counterparts.
In other market developments, gold fell 0.8% to over $4,700 per ounce, while silver fell 2% to around $76.15 per ounce. Bitcoin traded slightly lower at around $77,800.
