Morning wrap (18.06.2025)

9:01 am 18 June 2025

  • US indices edge higher, recovering yesterday’s losses, despite oil prices hovering still above $76 amid persistent Middle East tensions. European futures point to a positive open, although overall volatility in global equity markets remains contained

  • The Bank of Japan kept interest rates steady at 0.5%, aligning with market expectations. Nikkei 225 futures rose 1.5% today, while the USD/JPY pair edged down by 0.2%.

  • Analysts at ING expect the BoJ will hold rates unchanged until early 2026 if Japan's tariff negotiations with the U.S. drag on longer than expected. However, if core inflation continues to stay above 2% for the coming months, a rate hike in Japan is still possible in Q4

  • Gold slipped by 0.05% to $3,386 per ounce, while Bitcoin rebounded above the $105.5 mark after yesterday’s drop to $103.9. Sentiment across the crypto market remains cautious, reflecting investor unease

  • According to The New York Times, Iran has prepared missiles and other military assets to target US bases if Donald Trump chooses to enter the conflict. Meanwhile, VIX futures edged 0.8% lower, suggesting slightly calmer market nerves.

  • The biggest market stress today are the oil prices, after rebound to the highest level since January. Today, market attention will shift also to Federal Reserve decision (6 PM GMT) and projections, as well as Fed chair Jerome Powell conference (6:30 PM GMT). At 12:30 PM, we will learn US jobless claims report. The data above 250k may signal risk-off sentiments on Wall Street

  • US API oil report signalled a huge decline in oil reserves. Markets await today EIA data at 2:30 PM GMT to confirm this:

Crude Oil Stock Change -10.133M (Forecast -0.6M, Previous -0.37M)

Gasoline Stock Change -0.202M (Previous 2.969M)

US API Distillate Stock Change 0.318M (Previous 3.712M)

US API Cushing Stock Change -0.8M (Previous -0.728M )

  • Yesterday, US retail sales reading fell for the second month in a row. Also, industrial production came in lower than expected, signalling a 0.2% monthly decline. US home builders' confidence reached its lowest point since December 2022.

 

Wheat opens the session higher after the rollover. Source: xStation5

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