Market Update
U.S. Stocks and Energy Markets Remain Calm Despite the U.S. Joining Israel's War On Iran
Barry Adams
23 Jun, 2025
New York City
Wall Street indexes wavered around the flatline on Monday as investors assessed the tame oil market's response to the U.S. strike on Iran's nuclear sites.
The S&P 500 index edged up a fraction, and the tech-heavy Nasdaq Composite edged down a fraction, and crude oil inched higher by 2% in New York after rising as much as 6% in London trading.
U.S. officials confirmed three strikes on Iran's nuclear facilities and joined Israel's war on Iran.
However, military experts in the Middle East voiced skepticism about the effectiveness of such a strike and its impact on Iran's government.
Iran vowed to respond, and the country's parliament approved the blocking of the Strait of Hormuz, which could play a role in disrupting global energy supply.
Despite rising tensions in the Middle East, oil markets remained relatively calm, and crude oil futures struggled to rise to a six-month high.
European markets edged down 0.6%, and markets in Asia closed mixed as traders awaited Iran's response to the latest U.S. attacks.
Iran's ability to strike back is severely hampered as its key military ally, Russia, is struggling with its own war in Ukraine.
Moreover, China is unwilling to be drawn into an open conflict with the U.S. and Israel and provide direct support to Iran because the second-largest economy is dependent upon exports to the U.S. markets and the U.S. dollar payment system.
The combined military power of the U.S. and Israel far outweighs Iran's military capabilities.
Despite the U.S. and Israel's military superiority, the region's experts point to NATO's failed war in Afghanistan, which led to the replacement of one Taliban government with another Taliban government after two decades of war and more than $2 trillion of spending.
U.S. Stock Movers
Defense stocks advanced following the U.S. attacks on Iran's nuclear sites.
L3Harris Technologies Inc. added 1% to $252.09, Northrop Grumman Corp. advanced 1.1% to $503.14, RTX Corp. jumped 1.9% to $149.54, and Lockheed Martin Corp. edged up 0.7% to $473.70.
Energy complex stocks traded sideways, and investors focused on ample global supply of crude oil amid Iran's threats of closing the Strait of Hormuz.
Exxon Mobil Corp. gained 1.5% to $116.39, Chevron Corp. increased 1.3% to $151.50, ConocoPhillips advanced 1.4% to $96.0, and EOG Resources added 2% to $127.88.
European Stocks Backed Down In Muted Reaction After Middle East Tensions Flared Up
Bridgette Randall
23 Jun, 2025
London
European markets traded down on Monday despite the escalating tensions in the Middle East.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged lower, and the market's reaction was muted as traders awaited Iran's reaction.
Over the weekend, the U.S. carried out multiple aerial attacks on Iran's nuclear infrastructure, directly involving itself in Israel's war on Iran.
The direct involvement of the U.S. raised the stakes of a wider war in the region and increased risks of disruptions of global energy supply.
Moreover, Iran threatened to close crude oil supply through the Strait of Hormuz.
The added tensions in the Middle East stoked fears across the Eurozone, as Russia's war in Ukraine shows no sign of abating.
Meanwhile, over the weekend, Russia stepped up its bombing campaign, targeting multiple cities in Ukraine, including Kiev.
Europe Indexes and Yields
The DAX index decreased by 0.6% to 23,203.74, the CAC-40 index edged lower 0.7% to 7,537.22, and the FTSE 100 index declined 0.2% to 8,757.26.
The yield on 10-year German bonds inched higher to 2.55%, French bonds increased to 3.29%, UK gilts moved up to 4.57%, and Italian bonds edged higher to 3.57%.
The euro decreased to $1.15; the British pound was lower at $1.34; and the U.S. dollar was lower and traded at 81.70 Swiss cents.
Brent crude increased $0.19 to $77.46 a barrel, and the Dutch TTF natural gas was higher by €0.69 to €41.63 per MWh.
Europe Movers
Defense stocks advanced on Monday and extended a three-month rally amid heightened geopolitical tensions.
Thales SA edged up 0.1% to €249.80, Dassault Aviation SA edged up 0.8% to €307.40, Rheinmetall AG decreased 1.5% to €1,730.50, Safran SA edged up 0.3% to €261.0, and MTU Aero Engines AG decreased 0.2% to €372.40.
Energy complex stocks extended 7-day gains after Brent crude soared as much as 7% before easing the intraday gain to 2%.
Shell PLC increased 0.5% to 2,690.0 pence, BP PLC advanced 0.6% to 387.10 pence, and TotalEnergies SE rose 0.4% to €54.88.
European Stocks Backed Down In Muted Reaction After Middle East Tensions Flared Up
Bridgette Randall
23 Jun, 2025
London
European markets traded down on Monday despite the escalating tensions in the Middle East.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged lower, and the market's reaction was muted as traders awaited Iran's reaction.
Over the weekend, the U.S. carried out multiple aerial attacks on Iran's nuclear infrastructure, directly involving itself in Israel's war on Iran.
The direct involvement of the U.S. raised the stakes of a wider war in the region and increased risks of disruptions of global energy supply.
Moreover, Iran threatened to close crude oil supply through the Strait of Hormuz.
The added tensions in the Middle East stoked fears across the Eurozone, as Russia's war in Ukraine shows no sign of abating.
Meanwhile, over the weekend, Russia stepped up its bombing campaign, targeting multiple cities in Ukraine, including Kiev.
Europe Indexes and Yields
The DAX index decreased by 0.6% to 23,203.74, the CAC-40 index edged lower 0.7% to 7,537.22, and the FTSE 100 index declined 0.2% to 8,757.26.
The yield on 10-year German bonds inched higher to 2.55%, French bonds increased to 3.29%, UK gilts moved up to 4.57%, and Italian bonds edged higher to 3.57%.
The euro decreased to $1.15; the British pound was lower at $1.34; and the U.S. dollar was lower and traded at 81.70 Swiss cents.
Brent crude increased $0.19 to $77.46 a barrel, and the Dutch TTF natural gas was higher by €0.69 to €41.63 per MWh.
Europe Movers
Defense stocks advanced on Monday and extended a three-month rally amid heightened geopolitical tensions.
Thales SA edged up 0.1% to €249.80, Dassault Aviation SA edged up 0.8% to €307.40, Rheinmetall AG decreased 1.5% to €1,730.50, Safran SA edged up 0.3% to €261.0, and MTU Aero Engines AG decreased 0.2% to €372.40.
Energy complex stocks extended 7-day gains after Brent crude soared as much as 7% before easing the intraday gain to 2%.
Shell PLC increased 0.5% to 2,690.0 pence, BP PLC advanced 0.6% to 387.10 pence, and TotalEnergies SE rose 0.4% to €54.88.
Japan's Indexes Erased Early Losses After Global Crude Oil Supply Disruption Anxieties Eased
Akira Ito
23 Jun, 2025
Tokyo
Japan's indexes declined on Monday and extended losses for the third consecutive session.
The Nikkei 225 Stock Average decreased 0.2%, and the Topix declined 0.3% after the U.S. joined Israel's war targeting Iran's nuclear infrastructure.
Risk appetite weakened amid worries that the disruption in global crude oil and natural gas supply will stoke inflation at home and abroad.
On the economic front, Japan's services sector expanded for the third consecutive month in June, and the manufacturing sector activities returned to growth for the first time since May 2024.
The au Jibun Bank Japan Services Purchasing Managers' Index increased to 51.5 in June from a final 51.0 in May, S&P Global reported Monday.
The services sector activities expanded for the third month in a row, and new orders expanded and export orders edged up slightly.
The au Jibun Bank Japan Manufacturing PMI edged up to 50.4 in June from 49.4 in May, according to a flash estimate released by S&P Global.
The increase in manufacturing activities was driven by a rise in output and purchases of inventories, and the backlog of work declined at a slower pace.
Japan Indexes Stocks
The Nikkei 225 Stock Average decreased 0.2% to 38,337.35, and the broader Topix index declined 0.3% to 2,761.99.
Tokyo Electron decreased 1.1% to ¥23,705.0, Advantest Corp. dropped 1.2% to ¥9,710.0, and Disco Corp. fell 1.6% to ¥36,110.0.
Seven & I Holdings rose 1% to ¥2,264.50, Fast Retailing Co. Ltd. edged up 0.7% to ¥46,360.0, Takashimaya Corp. declined 0.4% to ¥1,094.50, and Aeon Corp. fell 1.2% to ¥4,453.0.
Nippon Yusen KK edged up 0.6% to ¥5,085.0, Mitsui O.S.K. Lines dropped 0.6% to ¥4,798.0, and Kawasaki Kisen Kaisha Ltd. added 0.8% to ¥2,039.0.