MARKET WRAPS
Stocks:
European shares fell after the U.S. and Iran signed an initial peace deal and as investors weighed a hawkish pivot from the Federal Reserve.
"Details of the deal showed that some of the previous red lines of the Trump administration have been ignored, raising some doubts on the durability of the deal," Jefferies said.
Oil prices fell more than 2% as the potential reopening of the Strait of Hormuz raised hopes for a gradual normalization of flows and return of Iranian barrels to the market.
"While the industry remains cautious about the pace of normalization, some tankers have already resumed movements and exporters such as Iraq are preparing to increase shipments," MUFG said.
On Wednesday, the Fed held rates steady as expected but indicated it could raise rates by year-end.
New Fed Chairman Kevin Warsh also emphasized that policymakers were "unambiguously and unanimously" committed to bringing inflation back to the Fed's 2% target.
Investors are now awaiting the Bank of England decision
at 1100 GMT. The central bank is widely expected to leave rates unchanged and the focus is on any guidance about whether it could raise rates later this year.
U.K. jobs data shows that pay growth is above levels consistent with the BOE's inflation target of 2%, Quilter Cheviot said. "Even if energy-driven inflation begins to ease, the Bank will need to be confident that second-round effects are fading
before shifting policy more decisively."
U.S. Markets:
Stock futures were up after Fed officials hinted more strongly
at the potential for higher interest rates.
Change is coming and the new chairman of the Fed, Kevin Warsh, "should be seen as thoughtful and flexible," Laffer Tengler Investments said. "Markets and consumers should be happy that more of the same will not be the default."
Forex:
The dollar stayed higher after reaching an 11-week high against a basket of currencies on Wednesday when the Fed signalled a possible interest-rate rise before year-end.
Sterling shows little reaction to the latest U.K. jobs data as investors await the Bank of England's policy decision later in the day.
Bonds:
Eurozone government bond yields opened slightly lower , tracking the direction of Treasury yields.
Government bond supply in the eurozone will be heavy on Thursday, totaling up to 21.5 billion euros, with Spain and France lining up for auctions.
Treasury yields were stable to lower
in early trade after the Fed left interest rates on hold, as expected, but turned more hawkish at the first meeting under the new Chairman Warsh. The meeting "raises the risk of interest rate hikes later this year, but our base case is still that the FOMC will leave the policy rate unchanged this year," said Goldman Sachs.
Energy:
In early European trading, Brent crude slid
2.3%, while WTI was down 2.5%. Both benchmarks have fallen roughly 15% so far this week.
Metals:
Gold prices fell after the Fed officials signaled their next move might be to raise interest rates, offsetting support from a drop in oil prices that eased concerns over inflation.
"The contrasting reactions highlight the market's current struggle to balance
short-term macro headwinds against longer-term structural support for gold," Saxo Bank said.
Base metals
Base metals fell in early trading after Trump signed the Iran deal, easing fears over prolonged supply disruptions and their impact on the global economy.
"Aluminium fundamentals are mixed, with strong Chinese supply and rising stocks offsetting Middle East supply risks," ANZ said. "Copper remains relatively supported by tight mine and concentrate supply alongside solid Chinese restocking demand."
Iron
Iron ore was lower in early Asian trade amid strong supply. Exports from Guinea's Simandou iron ore project surged in May, six months after its first shipment to China, ANZ Research said.
EMEA HEADLINES
Tesco Sales Bolstered by Online Growth
U.K. grocer Tesco booked a rise in like-for-like sales in its first fiscal quarter, bolstered by growth in its online channels.
The supermarket posted 16.83 billion pounds ($22.37 billion) in group sales excluding value-added tax and fuel for the 13 weeks through May 30, up 1% on a like-for-like basis from the same period a year earlier.
BE Semiconductor Raises Long-Term Revenue, Profitability Targets on AI Boost
BE Semiconductor Industries raised its long-term revenue and profitability targets, citing increased demand for artificial intelligence-related products.
The Dutch supplier of chip-making equipment, also known as Besi, on Thursday said it is now targeting total revenue ranging from 1.7 billion to 2.2 billion euros ($1.96 billion-$2.53 billion) over the long term, which compares with a previous target of between 1.5 billion and 1.9 billion euros.
L'Oreal to Buy Majority Stake in Innovist to Expand Footprint in India
L'Oreal said it has signed an agreement to acquire a majority stake in India's beauty and personal care brand Innovist to boost the company's presence in the country.
"This strategic move marks a major step in L'Oreal's expansion in India's fast-growing beauty industry and complements its portfolio with local brands tailored for Indian consumers," the French group said Thursday.
U.K. Unemployment Falls Below 5%
The U.K.'s unemployment rate inched down in the three months through April while wage growth remained flat, with continued weakness in the labor market reinforcing expectations that the Bank of England will keep interest rates on hold.
The unemployment rate was 4.9%, down from 5% in the three months through March, the U.K.'s Office for National Statistics said Thursday. This was lower than a consensus of economists polled by The Wall Street Journal, which forecast the rate to remain unchanged at 5%.
GLOBAL NEWS
Oil Prices Fall Amid Prospects of Fast Reopening of Strait of Hormuz
Oil prices retreated in Asia on Thursday afternoon as traders bet on a swift reopening of the Strait of Hormuz, the critical waterway through which roughly one-fifth of global oil shipments are typically transported.
Senior U.S. officials who read the text of the interim agreement between the U.S. and Iran said the "memorandum of understanding" would see Tehran reopen the strait after the U.S. lifts sanctions on Iran's oil sales. While the agreement was announced on Sunday, it hasn't been released to the public at Iran's request, according to the officials.
Warsh Overhauls How the Fed Talks and Keeps Markets Guessing on Rates
Kevin Warsh used his first meeting as Federal Reserve chairman to put his stamp on how the central bank operates and communicates.
He trimmed its policy statement, declined to submit a rate forecast of his own, and launched five task forces to study everything from how the Fed communicates to how it analyzes the economy-a sweeping reach into how the central bank operates.
Trump Signs Iran Deal, Says He Wants to Avoid 'Economic Catastrophe'
ÉVIAN-LES-BAINS, France-President Trump on Wednesday defended his agreement to end the Iran war, saying he wanted to avoid an "economic catastrophe" that could have resulted if the conflict the U.S. launched had continued.
Trump-who in an unexpected move signed the deal Wednesday in Versailles-said he was influenced by the stock market's rise as he worked toward a resolution of the conflict. He said he didn't want to be compared with former President Herbert Hoover, who was president during the 1929 market crash that led to the Great Depression.
Trump Signs Iran Deal, Says He Wants to Avoid 'Economic Catastrophe'
ÉVIAN-LES-BAINS, France-President Trump on Wednesday defended his agreement to end the Iran war, saying he wanted to avoid an "economic catastrophe" that could have resulted if the conflict the U.S. launched had continued.
Trump-who in an unexpected move signed the deal Wednesday in Versailles-said he was influenced by the stock market's rise as he worked toward a resolution of the conflict. He said he didn't want to be compared with former President Herbert Hoover, who was president during the 1929 market crash that led to the Great Depression.
Deal Gives Iran Chance to Turbocharge Its Oil Revenue
The U.S.-Iran peace agreement includes a huge boost to Tehran's oil industry, potentially restoring the regime's economic lifeblood while generating more than $60 billion a year of revenue.
The memorandum of understanding allows Iran to sell oil and fuel. Already this week, several oil-laden Iranian tankers have steamed out of port and across the U.S. naval blockade line, an early indication of the rush of anticipated exports.
Inside Trump and Netanyahu's Complicated Relationship
The frequent calls aren't so friendly anymore.
As President Trump was trying to broker a permanent end to his war in Iran that has weighed on the U.S. economy and kept gas prices above $4 a gallon, he had choice words for the partner that urged him into it.
DOJ Defends Musk's xAI in Data-Center Pollution Lawsuit
The Justice Department moved to block an NAACP lawsuit challenging xAI over allegations that gas turbines powering its Mississippi data center risk polluting nearby communities.
The lawsuit filed by the civil-rights group said xAI, Elon Musk's artificial-intelligence company, and its subsidiary MZX Tech are violating the Clean Air Act by operating gas turbines without an air permit at the data center in Southaven, Miss.
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June 18, 2026 05:00 ET (09:00 GMT)
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