Asian stocks fall amid tension in the Middle East and federal warnings
The shares fell alongside the sensitive currencies of the risks, with the fear of the possibility of a direct involvement of the United States in a conflict with Iran, and the president of federal reserve Jerome Powell, warned of concrete hypertrophy. The MSCI regional index of shares fell 0.8%as stocks in all Asia have decreased. US stock -futures in Asian trade fell 0.4% after the S&P 500 index ended the previous session without a significant change. The actions of Australia and New Zealand have fallen against the US dollar, while the Marke bond markets were closed on Thursday due to an official holiday in the United States. Investors became more careful after a report published by “Bloomberg” said that senior US officials in the coming days set plans for a possible strike on Iran. The markets were already in a state of tension after the Federal Reserve reduced its expectations for growth this year and increased its expectations for inflation, emphasizing how the condition of uncertainty as a result of customs duties hampered the efforts of the central bank to alleviate its monetary policy. The markets are reluctant to price a full escalation with Iran, and Charoy Chanana, the investment analyst at Saksu Markets, said: “Reports are planning the blow seriously, but the markets are still reluctant to price a full escalation.” She added: “Any estimate error can set a greater conflict on fire, and the foreign exchange markets will remain tense until the image becomes clear.” In the commodity markets, oil has dropped a week after volatile trading, at a time when the market focuses on whether President Donald Trump will push the United States to participate in the conflict between Israel and Iran. “The news initially elicited rapid sales, but the market was generally somewhat,” says Cocok Hong Wong, head of the sales of institutional trade at the “My Bank of Cistiortes” in Singapore. He added: “The markets are concerned because Trump suddenly left the seven summit without solving his decision on the conflict.” Trump has been talking for a few days in public about the possibility of a blow to Iran, who has been fighting a war with Israel for almost a week. He told reporters in the White House on Wednesday that he prefers to ‘make the final decision before the date at one moment’, given the nature of the changing situation in the Middle East. The fear of the impact of fees on inflation unanimously voted on Wednesday to keep the reference interest rate without change. Powell pointed out that the increase in customs duties is likely to raise prices, adding that its impact on inflation can be more sustainable. He refrained from declaring whether he would remain in his position after the end of his mandate. “In the end, the cost of customs paid lights must be paid, and part of it will be at the end of the final consumer,” Powell said. He added: “We know it is coming, and we just want to see a part of it before judging judgment.” Although medium expectations still indicate two reduction in interest rates in 2025, a number of officials have reduced their estimates. Seven officials now expect not to reduce interest this year, compared to four in March, while two indicated only one reduction during the year. “Powell played it safely.” He added: “They still keep reducing to two, but it is clear that customs duties have confused them. There is no urgency to move. It is a difficult situation: to delay growth, restless inflation and geopolitical risks for escalation.” A political crisis in Thailand rose the yen value by 0.1% against the US dollar. While the Australian dollar retained its previous losses, the Australian economy suddenly lost jobs in May. In Asia, Thailand is facing a new state of political instability, after the withdrawal of the second largest party in the government of Premier Betongarren Schnatara from the ruling coalition. The Taiwanese central bank is expected to keep the reference interest rate unchanged for the fifth quarter in a row, while the Central Bank of the Philippines is likely to reduce interest. Later on Thursday, the central banks in Switzerland, Norway, Turkey and the UK will announce their monetary policy decisions.