After Israel’s attack on Iran, the stock market declined, and investors flocked to safe-haven assets such as US Treasuries. The price of crude oil rose by 5.5%, and the price of gold also increased.
The S&P 500 futures index dropped by 1.5% and Asian stock markets fell by 0.3% due to Israel’s air strike on Iran. US Treasury bond prices rose, with the yield on 10-year Treasury bonds falling by 4 basis points to 4.32%. The Japanese yen rose by 0.4% against the US dollar to 142.87 yen, and the price of gold increased by 0.8%.
The Israeli attack on Iran has further escalated the stalemate surrounding Iran’s nuclear program. This attack comes at a time when efforts to resolve the tensions over Iran’s nuclear program through diplomatic channels have once again been called into question. US and Iranian negotiators are scheduled to hold their sixth round of talks in Oman on Sunday, but President Donald Trump said this week that he is not very confident about the possibility of reaching an agreement.
Matthew Haupt, portfolio manager at Wilson Asset Management, said: “The rise in bond and gold prices, as well as the surge in oil prices, all show typical safe-haven trends. These trends usually subside after the initial shock. What we are now watching is the speed and scale of Iran’s response, which will determine the duration of the current trends.”
Israeli Defense Minister Israel Katz said that Israel declared a state of emergency after carrying out a “preemptive strike”.
Previous media reports said that Israel is considering taking military action against Iran, and geopolitical concerns continue to weigh on the market. US President Donald Trump previously said that Israel is “very likely” to take military action against Iran, but he suggested not launching an attack during the negotiations on Iran’s nuclear program.
Israel has been engaged in a large-scale military operation in the Gaza Strip. Over the past 20 months, it has been bombing and blockading the civilian population of Gaza, in an attempt to destroy the Hamas organization following its deadly attack on the Jewish state on October 7, 2023.
Charu Chanana, chief investment strategist at Saxo Bank, said: “News of Israel’s air strikes in Iran has once again triggered a geopolitical risk premium. Any sign of retaliation or supply disruption will cause market volatility to continue to rise and push up the prices of oil and safe-haven assets.”
US Secretary of State Rubio said that the United States was not involved in the air strike and that Israel took action against Iran unilaterally.
Technical analysis:
Gold: Yesterday, the performance of our plugin was simply perfect. We bought at the green and yellow signals, locking in the lowest point of the price fluctuation. Meanwhile, the buy stop at the blue breakout could capture the subsequent accelerated upward break. Due to the possible increase in volatility caused by the geopolitical situation today, we will continue to use the strategy of placing two color-changing liquidity sweeps followed by a low buy. For detailed positions, please consult the plugin.
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the picture, please contact V: Hana-fgfg and note “666” in the message.
The Nasdaq: The price has been showing a pattern of sweeping liquidity pullbacks after hitting new highs (intraday highs or period highs) consecutively. Our plugin has captured this perfectly for two consecutive trading days. We will temporarily continue to adhere to this operation guideline intraday. If the geopolitical situation continues to intensify, it will not be a favorable factor for the Nasdaq. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and note “666” in the message.
Crude oil: Yesterday’s green buy limit operation was truly classic. With a stop loss of just 0.4, we gained over 10 dollars in the highest rise, achieving a profit-to-loss ratio of 25 times. Today, we need to be cautious of wide fluctuations and have arranged two operation plans in yellow and blue. For detailed positions, please consult the plugin.
(Crude Oil 15-Minute Chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the picture, please contact V: Hana-fgfg and note “666” in the message.
Today’s key economic data and events to focus on:
14:00 Germany May Harmonized Index of Consumer Prices (HICP) Final (YoY)
14:45 France May Consumer Price Index (MoM) Final Value
17:00 Eurozone April seasonally adjusted trade balance (billion euros)
At 19:45, Mario Monti, a member of the European Central Bank’s Supervisory Board, delivered a speech at the “Pan-European Corporate Group Club” conference in Frankfurt, Germany.
22:00 U.S. June University of Michigan Consumer Sentiment Index Preliminary Value
