Oil prices eased as traffic through the Strait of Hormuz showed healthier signs, while tech shares faltered. The USD strengthened against major currencies with concerns around potential intervention f
In a subdued session marking the start of July, European markets saw mixed performance amid ongoing US-Iran tensions and easing oil prices. WTI crude futures declined by 0.7% to $69.00 as traffic through the Strait of Hormuz improved but remained cautious.
Tech shares faced downward pressure following their sluggish June performance, with S&P 500 futures declining 0.2% and Nasdaq futures retreating 0.5%. European indices also showed a varied response to the new month's beginning.
The Eurozone inflation data confirmed a slight slowdown in annual numbers, giving the ECB room to delay policy decisions until after summer break. The dollar maintained its strength with EUR/USD falling by 0.3% and AUD/USD dropping 0.4%, while USD/JPY hit new 40-year highs at 162.70.
US Treasury yields rebounded, rising 6 basis points to 4.48%. Precious metals also gained ground with gold prices up by 0.6% to $4,030 on the day. The focus now shifts towards the US jobs report expected early Thursday amidst a holiday-shortened week leading into Independence Day.
The market reaction mirrored ongoing geopolitical tensions and economic indicators. Oil's retreat suggested stability in global supply dynamics while tech shares' decline pointed to potential profit-taking after June's gains. Currencies like the dollar benefited from overall market sentiment, with Japan's currency pair reaching 40-year highs amid speculation of possible intervention.
Traders should closely monitor upcoming macroeconomic data points such as the US jobs report and inflation figures for further guidance on global economic conditions. These reports will be crucial in shaping near-term trading strategies.
Source: InvestingLive. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.