Today's Edition
SYDNEY (REUTERS)
Share markets slid in Asia on Thursday as news of fresh strikes challenged optimism surrounding a US-Iran peace deal, while US inflation data loomed as a threat for bonds and interest rates.
Oil prices bounced nearly 4% and Treasury yields climbed. Brent crude rebounded 3.6% to $97.71 a barrel, while US crude added 3.8% to $92.05.
In commodity markets, gold slid 1.8% to $4,374 an ounce, having again seen scant support as a safe haven or as a hedge against inflation risks.
Yields on 10-year notes rose 4 basis points to 4.526% as the risk of oil staying high kept upward pressure on inflation expectations.
It also took a little steam out of the tech-driven bull run in stock markets, with Japan's Nikkei losing 1.4%, while South Korean shares slid 3.2%. MSCI's broadest index of Asia-Pacific shares excluding Japan fell 2.1%.
For Europe, EUROSTOX 50 futures fell 1.2%, while FTSE futures shed 0.9% and DAX futures 1.0%. S&P 500 futures eased 0.3% and Nasdaq futures fell 0.8%.
The US dollar was trading at 99.506 against a basket of currencies, steady on the week. The dollar crept to a four-week top on the yen at 159.65, nearing the 160.00 barrier that has triggered Japanese government intervention in the past.
The euro was 0.3% lower at $1.1590, though it has some support from expectations that the European Central Bank will hike interest rates when it meets in June.
