Bangkok, June 24 (AP) – Global markets showed a strong rally on Tuesday, supported by a dip in oil prices, after U.S. President Donald Trump announced a tentative ceasefire in the ongoing Israel-Iran conflict. Despite the announcement from Trump, uncertainty lingered as Israel reported that Iran had fired missiles into its airspace just three hours after the ceasefire reportedly took effect, promising retaliation in response. Nevertheless, investor sentiment was buoyed by Trump's declaration of an impending "complete and total ceasefire." This followed Iran’s measured missile attack on a U.S. military base in Qatar, conducted in retaliation for American strikes on its nuclear facilities over the preceding weekend. In response, the futures market for the S&P 500 saw a 0.8% rise, while the Dow Jones Industrial Average futures climbed 0.6%. Stephen Innes, an analyst at SPI Asset Management, commented, "The Middle East may still be smoldering, but as far as markets are concerned, the fire alarm has been shut off." European markets also reflected this optimism. Germany’s DAX surged 1.8% to 23,679.64, the CAC 40 in Paris rose by 1.2% to 7,631.07, and London’s FTSE 100 increased by 0.4% to 8,789.91. Asian markets followed suit, with Tokyo’s Nikkei 225 climbing 1.1% to 38,790.56 and Hong Kong’s Hang Seng advancing 2.1% to 24,177.07. Meanwhile, the Shanghai Composite index went up by 1.2% to 3,420.57. In other parts of Asia, South Korea's Kospi jumped 3% to 3,103.64, Australia’s S&P/ASX 200 gained 1% to 8,555.50, and Taiwan’s Taiex climbed 2.1%. India’s Sensex rose by 0.6%, while in Bangkok, the SET surged by 2.5%. On the commodities front, oil prices dropped further after a significant fall on Monday due to reduced fears of an Iranian blockade of the Strait of Hormuz, a critical channel for global oil shipments. Initially, oil prices spiked by 6% when trading began Sunday night, reacting to the U.S. bombings. However, these gains quickly dissipated as U.S. benchmark crude plunged 7.2% and continued to decrease on Tuesday morning, losing 2.4% to settle at $66.85 per barrel, having briefly exceeded $78. Brent crude, the international oil standard, also fell by 2.4% early Tuesday to $68.83. Despite the turbulence, U.S. stocks saw gains on Monday. The S&P 500 was up 1%, with the Dow Jones Industrial Average and Nasdaq composite index both increasing by 0.9%. Iran’s retaliation did not appear to impact the oil supply directly, mitigating some fears that the Israel-Iran conflict would constrict supplies and drive up prices of crude and related products. In the U.S., Treasury yields saw a decline after a high-ranking Federal Reserve official expressed support for potential rate cuts at the Fed's next meeting, contingent upon contained inflation pressures. Investors are keenly awaiting Fed Chair Jerome Powell's address to the U.S. Congress later on Tuesday. The yield on the 10-year Treasury remained steady at 4.33%, down from 4.38% on Friday, while the two-year Treasury yield, closely tied to Fed expectations, fell to 3.83% from 3.90%. The Federal Reserve has treaded cautiously with interest rate reductions this year, factoring in the potential impact of President Trump’s tariffs on the U.S. economy and inflation levels. Though inflation has remained modest recently, rising oil and gasoline prices could increase inflation rates, complicating the Fed's decisions on rate cuts as they risk boosting inflation further. In the stock market, Tesla led the S&P 500's rise with an impressive 8.2% gain. This surge followed the initiation of a pilot program for self-driving taxis in Austin, Texas, that Tesla CEO Elon Musk has long promoted as crucial to the company’s high stock valuation. Conversely, Hims & Hers Health saw a dramatic 34.6% drop in its stock price after Novo Nordisk announced it would cease selling its renowned Wegovy obesity drug through the company. Novo Nordisk’s U.S.-listed stock fell by 5.5%. In currency exchange, the U.S. dollar slipped to 145.44 Japanese yen from 146.15 yen on the previous day, whereas the euro increased to $1.1604 from $1.1578. (AP) NSA NSA
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