📰 Quiet Start to the Week
Asia Markets Stay Calm Despite Escalating Israel–Iran Conflict
Tensions in the Middle East are on the rise, with ongoing retaliatory strikes between Israel and Iran. Although Russian President Putin has expressed a willingness to mediate, there’s been no progress so far. In fact, both countries appear to be hardening their stances, raising concerns of further escalation.
Surprisingly, the market’s response has remained calm. In early Asian trading, while crude oil and gold remain elevated, the momentum behind the rally has paused. Asian equities — including Japan’s Nikkei — are trading in positive territory, and overall risk sentiment appears restrained.
One factor supporting the market is stronger-than-expected Chinese retail sales data for May, which has helped stabilize sentiment.
🕓 Key Focus Heading into European and U.S. Sessions
The next direction will largely depend on how Western markets interpret the weekend's geopolitical developments.
Currently, U.S. equity futures are ticking higher, suggesting no excessive flight to safety.
📈 Economic Indicators Scheduled for Release:
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🇺🇸 NY Empire State Manufacturing Index (June)
Previous: -9.2 → Forecast: -6.3 (slight improvement expected) -
🇨🇦 Housing Starts (May)
Previous: 278,600 → Forecast: 247,500 (expected decline)
There are limited key data releases in Europe today. Indian WPI, Swiss PPI/import prices, and Turkey’s current account balance are due, but they’re unlikely to sway broader markets.
🗣 Key Political Events & Comments
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🇩🇪 Bundesbank President Joachim Nagel
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🇪🇺 ECB Executive Board Member Fabio Panetta (via Cipollone’s role)
Both are scheduled to speak and could provide minor cues for EUR assets.
Also on the radar:
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U.S. 20-Year Treasury Auction (13 billion USD)
Watch for moves in long-term yields. -
G7 Leaders’ Summit (through June 17, hosted in Canada)
The summit is expected to end without a joint communiqué, reflecting internal divisions. Market watchers should also monitor each nation’s remarks on the Middle East crisis.
💬 Trade Strategy Notes
Markets appear calm on the surface, but the underlying risk from the Israel–Iran conflict remains high — and could flare up at any moment.
Stocks, gold, and FX are each moving to their own rhythm, so precise timing is key for short-term trading strategies.
📌 It would be wise to wait for tonight’s U.S. session and the Treasury auction outcome before building positions.
