(The opinions expressed here are those of the author, a
columnist for Reuters.)
By Mike Dolan
June 29 (Reuters) -
What matters in U.S. and global markets today
By Mike Dolan, Editor-at-Large, Finance and Markets
Is it over or not? World markets that assumed the Middle East
conflict was over and done with got a rude awakening over the
weekend after the United States conducted fresh strikes on Iran
in response to attacks on Gulf shipping.
But oil markets barely got a chance to react in early trading
today, as the two sides agreed to halt hostilities and resume
peace talks once again.
I'll get into that and more below.
But first, listen to the latest episode of the Morning Bid daily
podcast. Subscribe to hear Reuters journalists discuss the
biggest news in markets and finance seven days a week.
WEEKEND WARS
Crude prices didn't react much to the weekend's hostilities,
maintaining their recent slide to pre-war levels heading into
the week, with parts of the oil market already seeing oversupply
due to a resumption of Gulf shipping. Brent crude was still
trading at under $73 per barrel on Monday morning, after
slipping more than 10% last week.
However, the wobbly tech sector remains on edge after last
week's whipsaws and selloffs, largely due to profit-taking after
a spectacular quarter for chip stocks.
Real concerns are still swirling on that front. Despite Micron
Technology's blowout earnings report last week, the tech space
was also rocked by product price rises from Apple on soaring
memory costs, as well as reports of a possible delay to OpenAI's
planned IPO.
Combined with the peace deal uncertainty, those worries helped
keep Asia markets jittery on Monday, with major indexes closing
lower. Things looked steadier elsewhere, with Wall Street
futures in the green before the bell and European shares holding
their ground in early trading.
Meanwhile, the dollar was poised for its biggest monthly gain
against major peers in nearly a year, fired higher by Federal
Reserve rate-hike bets.
The week will be shortened by Friday's Independence Day
holiday stateside, with the June payrolls report set for release
on Thursday. That should give a further read on the outlook for
Fed policy.
Elsewhere on the calendar for the week, new Fed Chair Kevin
Warsh will make a speech on Wednesday at the European Central
Bank's annual symposium in Sintra, Portugal, which kicks off
today.
And Andy Burnham, the leading contender to become the next UK
prime minister, was set to deliver his first keynote speech on a
plan for government on Monday morning. He is expected to outline
a long-term vision for raising living standards and giving more
power to regional authorities.
Chart of the day
The U.S. dollar is heading for its biggest monthly gain in
nearly a year, ahead of key U.S. jobs data later in the
holiday-shortened week, with futures markets still betting on a
Fed interest rate rise by October.
At the sharp end of the dollar stick is Japan's yen, which
continues to hover near 40-year lows. CFTC data shows that
speculative short-yen positioning has ballooned to extremes not
seen since 2024.
Today's events to watch
* ECB's annual forum begins in Portugal
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