On Thursday morning (19 June, 9:20 AM, GMT+7, Bangkok time), indices in Asia Pacific declined as traders digested the Federal Reserve’s move to leave interest rates unchanged while ongoing worries over the Israel-Iran conflict continued to unsettle market sentiment.
The U.S. Federal Reserve left its key interest rate unchanged at 4.25% to 4.5% after its Wednesday meeting, maintaining its policy stance since December. Fed Chair Jerome Powell emphasized that the committee would assess how the Trump administration’s tariffs could influence inflation before considering a shift in monetary policy. Nevertheless, the central bank maintained its outlook for two possible rate reductions by the end of the year.
Japan’s NIKKEI dropped by 0.75% to 38,594.97. South Korea’s KOSPI slid by 0.4% to 2,960.25, and Australia’s ASX 200 dipped by 0.22% to 8,512.1.
As for stocks in China, Shanghai’s SSEC decreased by 0.37% to 3,376.43. Hong Kong’s HSI fell by 0.82% to 23,516.61, and Shenzhen’s SZI contracted by 0.23% to 10,152.73.
The U.S. stock markets were mixed on Wednesday as the Dow Jones Industrial Average (DJIA) shrank by 0.1% to 42,171.66. S&P 500 lost 0.03% to 5,980.87, while NASDAQ climbed by 0.13% to 19,546.27. VIX plummeted by 6.76% to 20.14.
As for commodities, oil prices settled higher on Wednesday as investors assessed the likelihood of supply interruptions caused by the ongoing conflict between Iran and Israel. Adding to market anxiety was the prospect of direct U.S. involvement in the dispute amid Donald Trump’s consideration of a potential military strike on Iran. Brent futures gained 25 cents or 0.32% to $76.70 a barrel, and the West Texas Intermediate (WTI) increased 30 cents or 0.4% to $75.14 per barrel.
This morning, Brent futures diminished 31 cents or 0.4% to $76.39 a barrel, and the WTI futures declined 28 cents or 0.37% to $74.86 per barrel.
Meanwhile, gold futures fell by 0.39% to $3,394.9 per Troy ounce.
