UAW Escalates Action On Ford
The United Auto Workers said on Saturday they had to escalate action against Ford (F.N) as they expected a revised offer from the automaker but were given the same offer as two weeks ago.
Tariff-Free Trade Extended Between Britain And S. Korea
Britain and South Korea have agreed to extend a period of low or zero tariffs on bilateral trade by two years, ahead of talks to forge a new trade deal to boost the car industry, the British government said earlier today.
More Restrictions On A.I. Chip Exports To China
The U.S. will take steps to prevent American chipmakers from selling semiconductors to China that circumvent government restrictions, a U.S. official said, as part of the Biden administration’s upcoming actions to block more A.I. chip exports.
Today’s News
As conflicts in the Middle East persist, the world is keeping a close eye on safe haven assets as investors keep tabs on the events that are currently transpiring. Asia stocks declined, while the greenback and yen were steady in early trading in Asia as the U.S. and its allies sought to contain conflicts in the Middle East. Oil and gold edged lower after Friday’s rallies.
Japanese, Australian and South Korean shares all fell while equity futures in Hong Kong also pointed to losses, after U.S. stocks dipped and bonds surged on Friday as traders sought out safety amid the looming prospect of a ground offensive in Gaza. In an early Asia trading, contracts for U.S. equities and Treasury yields gained.
U.S. President Joe Biden is considering visiting Israel in the coming days as his officials held talks with Iran through back-channels to contain the Israel-Hamas war. A sharper escalation could bring Israel into a direct clash with Iran, a supplier of arms and money to Hamas, which the U.S. and European Union have designated a terrorist group. Data estimates indicate that oil prices may soar to USD 150 and tip the world economy into recession.
“The Palestinian cause holds deep personal significance for many in the Arab world, and attempting to sideline it or prioritize economic interests over it in high-level diplomacy is a dangerous illusion,” Stephen Innes, managing partner at SPI Asset Management, said in a note earlier today. “Hence, this is the primary reason an Israeli escalation in Gaza is a colossal powder keg waiting to ignite.”
Other related news include:
Global Markets Stabilize As U.S. Seeks To Contain War
Demand for haven assets waned as the trading week began in Asia with the U.S. and its allies attempting to contain the Israel-Hamas war. The New Zealand dollar advanced after a new government was elected.
The prospect of wild price swings continued to hound investors though, especially after Friday’s surges in crude oil, gold and the Swiss franc versus the euro. The U.S. dollar and Treasuries — traditional refuges in times of turmoil, slipped in an early trading while risk-sensitive currencies including the Australian dollar edged higher.
Global Markets On High Alert As Tensions Rise
The Israeli-Hamas war has sharpened the focus on rising geopolitical risks for financial markets, as investors wait to see if the conflict draws in other countries with the potential to drive up oil prices further and deal a fresh blow to the world economy.
Israel’s Prime Minister Benjamin Netanyahu vowed on Sunday to “demolish Hamas” as his military prepared ground operations in Gaza to root out the militant group, whose deadly rampage through Israeli border towns stunned the world.
Market Anxiety Rises As Oil Hovers Above USD 90
Crude oil hovered above USD 90 a barrel while equities were weak, and the safe haven dollar was firm on Monday as investors nervously watch for signs if the chaos in Gaza would spread beyond Israel and Hamas.
Brent crude futures reached a new recent high of USD 91.20 today before easing back slightly to USD 90.84, following Friday’s 5.7% surge. Japan’s Nikkei share average (.N225) fell more than 1%, while Australia’s S&P/ASX 200 index (.AXJO) lost 0.15% in early trading. New Zealand’s equity benchmark (.NZ50) slid 0.9%.
