Latest Finance-Economy News
Trump Sets Tuesday Deadline for Iran, Threatens Infrastructure Strikes
President Trump has given Iran until 8 p.m. ET Tuesday to reopen the Strait of Hormuz and agree to a deal or face US strikes targeting energy sites, power facilities, and bridges. War Secretary Pete Hegseth said Monday marked the heaviest strikes so far, with even larger action expected Tuesday.
Despite escalation, markets turned more optimistic after Trump signaled Iranian negotiators were open to a deal.
Stock Futures Climb Ahead of Trump's Iran Deadline
Stock futures are climbing as President Trump's deadline to reopen the Strait of Hormuz approaches, with investors pricing in a potential U.S. victory over Iran. Stocks ended higher on Monday on hopes that a resolution would be reached before the deadline.
The critical waterway is essential for global trade, with about a fifth of the world's oil transiting through it in peacetime.
US Nonfarm Payrolls Surge, Underscoring Economic Resilience
Nonfarm payrolls showed strong growth, demonstrating continued economic resilience in the US labor market. However, the strong employment data contrasts with weakening services sector activity.
This employment strength suggests the economy remains fundamentally sound despite recent mixed signals.
US Services PMI Dips Below Expectations
The headline PMI fell to 54.0 from 56.1, missing the 55 forecast, with business activity dropping sharply to 53.9 from 59.9. Inflation and labor components raised concerns for the Fed, as prices paid surged to 70.7 from 63.0 ahead of upcoming CPI data, while employment weakened to 45.2 despite strong recent payrolls.
The decline suggests softening momentum in the services sector, a key driver of US economic growth.
Dollar Softens Against G10 as Middle East Tensions Rise
The US dollar weakened against major currencies as Middle East tensions steer early-week market sentiment. Geopolitical uncertainty and the prospect of conflict typically pressurize safe-haven demand, affecting currency valuations.
The USDTHB currency pair moved in the range of 32.57-32.59, with supportive level at 32.40 and resistance at 32.70.
Samsung Posts Eight-Fold Increase in Profit
Samsung announced an eight-fold increase in profit, demonstrating strong performance in the technology sector. The company's shares rose after posting the profit beat, reflecting investor confidence in the conglomerate's financial performance.
This positive earnings result contrasts with broader market uncertainty driven by geopolitical factors.
Oil Gains as Trump Amps Up Threats Before Iran Deadline
Oil prices responded to Trump's escalating threats against Iran, with gains linked to supply concerns stemming from potential military action. The threat to critical energy infrastructure and the Strait of Hormuz closure risk support crude prices.
Approximately one-fifth of global oil passes through the Hormuz Strait, making supply disruptions a significant concern for energy markets.
Hormuz Traffic Rises to Highest in Weeks as More Transits Agreed
Traffic through the Strait of Hormuz has risen to its highest level in weeks as more transits have been agreed upon. This increase in shipping activity reflects cautious optimism about potential negotiations before Trump's deadline.
The rising traffic suggests some easing of tensions despite the ongoing threat of military action.
China Services PMI Slows Post-Holiday
China's services PMI showed slowdown following the post-holiday period, reflecting cooling economic momentum in the world's second-largest economy. The contraction in China's services activity has global implications given the country's importance to international trade.
This slowdown adds to concerns about global economic growth prospects amid geopolitical tensions.
S&P 500 Gains 0.44% as Markets Show Cautious Optimism
The S&P 500 Index rose 0.44% to 6,611.83, reflecting cautious market optimism despite geopolitical tensions. The positive performance suggests investors are pricing in a potential resolution to the Iran crisis before Trump's deadline.
Thai stock market declined 0.80% at 1,454.0, showing regional divergence in market sentiment.
Thailand and Philippines CPI Data Due as Iran War Pushes Prices Higher
Thailand and Philippines inflation data are scheduled for release as the Iran conflict threatens to push prices higher globally. Geopolitical tensions affecting oil prices create upside risks to inflation expectations in emerging markets.
These economies are particularly vulnerable to energy price shocks given their import dependence.
Iran President Says 14 Million Volunteers Answer Calls to Fight
Iran's president stated that 14 million people had answered calls to volunteer to fight in response to the US threats. Iran also urged youths to form human chains around power plants in preparation for potential strikes.
These domestic mobilization efforts underscore the escalating tensions and Iran's readiness for potential military confrontation.