From Yahoo Finance: 2025-06-12 07:09:00

Today’s market is impacted by multiple factors, including rising oil prices due to Middle East tensions and lower U.S. inflation rates. U.S. President Trump moves personnel out of the region amid talks with Iran. An Air India plane crashes with 242 people on board. Trade negotiations shift to a slower pace, and a proposed U.S. tax could affect European energy companies.

Oil prices surge 4% after the U.S. announces personnel movements in the Middle East. European travel stocks and auto makers fall, while gold and the dollar see minimal changes. The U.N. watchdog declares Iran in breach of nuclear obligations, raising concerns about energy prices and tariff-related inflation.

Despite lower U.S. consumer prices in May, concerns about energy prices and geopolitical tensions persist. Treasury yields fall as demand remains strong, and Fed interest rate cuts are expected by year-end. The dollar weakens, while stocks show slight declines. The U.S.-China trade deal brings some relief, but details remain unclear.

Trump touts progress in U.S.-China trade talks, highlighting rare earth supplies and tariffs. China confirms the trade deal, but uncertainty looms as the 90-day tariff pause nears expiration. Boeing shares drop after an Air India plane crash. The weakening dollar prompts a debate on its drivers. The UK sees a GDP contraction, impacting the Bank of England’s monetary policy.

Key events to watch include the U.S. producer price report and jobless claims, along with Treasury bond auctions and ECB speeches. Opinions expressed are the author’s own. Stay updated with the Morning Bid newsletter for daily market insights.

Read more: Morning Bid: Oil pops, dollar drops