Westpac: Daily Prep - FJElite
Markets adopted a generally risk-off tone as President Trump reaffirmed he was not interested in extending the truce with Iran, with renewed tensions in the Middle East pushing oil prices higher and complicating sentiment.
Equities weakened in the US and Europe as rising oil prices weighed on sentiment, while Asian markets outperformed, supported by semiconductor stocks and closing before the subsequent oil price rally.
US Treasuries weakened as oil prices rose.
The USD softened marginally on subdued expectations for further Fed tightening, with the AUD extending gains against the greenback to move above the 0.71 handle.
Oil prices rose as markets assessed the US and Iran were moving further away from a deal, with Brent climbing back above US$90/ bbl. Weaker Chinese data weighed on iron ore and coking coal.