Key facts
- Copper prices declined due to macroeconomic concerns and Middle East conflict volatility.
- Oil prices climbed following fresh U.S. airstrikes against Iran.
- Global stock markets fell, led by technology stocks, amid inflation and interest rate worries.
- Brent crude rose to $92.30 a barrel and US benchmark crude to $89.04 a barrel.
- Asian shares mostly retreated, with South Korea's Kospi down 4.7% and Japan's Nikkei 225 down 1.4%.
Global stock markets declined on Wednesday, extending a volatile week as concerns about rising inflation, potential U.S. interest rate hikes, and escalating Middle East tensions persisted. Asian shares mostly retreated, mirroring a sell-off in technology stocks on Wall Street, while oil prices climbed following fresh U.S. airstrikes against Iran.
The U.S. military launched attacks early Wednesday after an Army helicopter crashed near the Strait of Hormuz, an incident President Donald Trump blamed on Iran. Tehran vowed to respond, raising doubts about prospects for a lasting ceasefire and unsettling markets already rattled by volatility in artificial intelligence-linked stocks. Uncertainty over the reopening of the Strait of Hormuz also pushed oil prices higher, with Brent crude rising 0.9% to $92.30 a barrel and U.S. benchmark crude gaining 1% to $89.04 a barrel.
In stock markets, technology shares led the decline as investors worried that higher interest rates could impact growth companies. Traders are closely watching U.S. inflation data, with economists expecting consumer prices to rise at their fastest annual pace in over three years. Strong U.S. jobs data last week fueled speculation that the Federal Reserve might raise interest rates. The tech sell-off followed a strong AI-driven rally since March, with some investors questioning current valuations.
South Korea's Kospi fell 4.7%, Japan's Nikkei 225 declined 1.4%, and Hong Kong's Hang Seng Index lost 1.1%. Mainland China's Shanghai Composite slipped 0.7%, while Australia's S&P/ASX 200 edged up 0.2%. On Wall Street, the S&P 500 fell 0.3% on Tuesday, the Nasdaq composite dropped 1%, and U.S. chipmakers like Micron Technology, Marvell Technology, and AMD saw significant declines.
In currency markets, the U.S. dollar was little changed against the yen, while the euro edged up. Gold fell 2% in early European trading. U.S. 10-year Treasury yields rose 2.3 basis points to 4.545%.