Morning Report

Morning Report PDF (PDF 266KB)

Key themes:

• Global markets stabilised overnight traders responding to conflicting US messaging on the war in the Middle East. US officials signalled that military operations were escalating against Iran, which threw cold water on President Trump's suggestion that the conflict could be resolved soon.
• Key US equity indices retraced earlier gains to finish slightly lower, while European markets, responding to news from the previous day, moved higher. Asian markets also finished firmly in the green. Treasury yields ticked up in the US but fell across most of Europe.
• There was a clear risk on tone in currency markets, with the US dollar falling 0.3%, while the Aussie outperformed, rising to its highest intraday level of 0.7168 since June 2022.
• Commodity prices were generally lower, led by oil, which fell almost 10%, extending losses after the US President signalled the conflict could be resolved soon.