Global markets and oil fall ahead of details on US sanctions against Iran
Global stock markets fell on Monday, August 24, while oil futures lost more than 1% ahead of details of the announced US sanctions against Iran. According to Channel NewsAsia, US Treasury Secretary Scott Bessent was due to hold a press conference on restrictions against Tehran.
Iran, the outlet noted, showed no signs of giving up control over the Strait of Hormuz, an important oil transportation route. Some traders were taking profits after a substantial rise in oil prices last week.
Expectations for Nvidia and the Fed
Investors' attention was also focused on Nvidia's quarterly report, which the company was due to release on Wednesday. Analysts expected the chipmaker's quarterly revenue to nearly double to around $92 billion. Full-year profit forecasts were estimated at between $103 billion and $105 billion.
Mark Ellis, chief investment officer at Nutshell Asset Management, believed that the tone of Nvidia's report could affect sentiment on the Nasdaq market. Market participants were also awaiting a speech by US Federal Reserve Chair Kevin Warsh in Jackson Hole on August 28. Markets put the probability of a Fed rate increase at the September 16 meeting at around 40%.
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Stocks and currencies
European stocks fell 0.1% at the start of trading, following declines on Asian markets, including technology shares in South Korea. Futures on the S&P 500 index lost 0.2%, while Nasdaq futures fell 0.7%.
Hong Kong-listed Alibaba shares dropped about 9% after the company announced a $10.2 billion share offering. The US dollar strengthened 0.5% against the Canadian dollar to 1.3837 after Canadian Prime Minister Mark Carney said he intended to impose retaliatory tariffs on US goods following the breakdown of trade negotiations.
Canada planned to impose tariffs on US steel, dairy products, household appliances, agricultural equipment, pulp, paper and electronics. Gold rose 0.8% to $4,640 per ounce, and its price has increased by about 15% since the start of the month.
