Israel-Iran truce hope in tatters

By rahmat hidayat

Tuesday, June 17, 2025

Global news you can trust.

Download the Reuters App.

Morning Bid Europe

A look at the day ahead in European and global markets

By Ankur Banerjee, Asia Finance & Markets Breaking News Correspondent

Data refreshes every time you open this email. For more European market news, click here. Please send any feedback to morningbid@thomsonreuters.com.

Investor hope of a quick resolution to the Israel-Iran conflict was swiftly dashed after the long-time rivals attacked each other again and U.S. President Donald Trump urged Iranians to evacuate Tehran.

That, along with Trump reportedly calling the U.S. national security council and cutting short his visit to the Group of Seven summit, rattled investors leading to major risk-off moves.

Today's Market News

Market resilience

Ultra Orthodox jews look at an impacted site following missile attack from Iran on Israel, in Bnei Brak, Israel, June 16, 2025. REUTERS/Miro Maman

European markets are set to open deep in the red, futures indicated, while oil prices jumped nearly 2% in Asian hours, taking gains to 7.5% since the conflict started on Friday.

U.S. futures also fell but currencies were relatively stable - with the U.S. dollar reprising its role as a safe haven. The worry for markets and the world remains that of possible U.S. involvement, broadening the conflict.

A White House aide said it was not true the U.S. was attacking Iran. Defense Secretary Pete Hegseth told Fox News that Trump was aiming for a deal with Iran on the latter's nuclear-related activity, and said the U.S. would defend its assets in the region.

Markets have generally been resilient to Israel-Iran developments since initial bouts of knee-jerk selling as investors look beyond the conflicts around the globe, keeping benchmark U.S. and European stock indexes close to record highs.

Graphics are produced by Reuters.

BOJ caution

Amid the geopolitical noise, investors are bracing for a slate of central bank meetings this week, starting with the Bank of Japan which held interest rates as widely expected. The focus was rather on what the BOJ would do to its bond-tapering programme.

The BOJ decided to slow the pace of reduction of bond purchases from next fiscal year, signalling its preference to move cautiously in normalising still-easy monetary policy.

The central bank faces fresh challenges in weaning the economy off decade-long stimulus that has kept rates ultra-low and left the bank with an economy-sized balance sheet.

Market reaction to the BOJ's meeting outcome was muted, with the yen and bond yields glacial. As UBS analysts put it, "It's lots of mulling for not so much change."

Key developments that could influence markets on Tuesday:

Economic events: Germany's ZEW economic sentiment for June

Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Get full access to Reuters.com for just $1/week. Subscribe now.

Sponsors are not involved in the creation of newsletters or other Reuters news content. Advertise in this newsletter or on Reuters' website

Morning Bid is sent every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here.

Want to stop receiving this email? Unsubscribe here. To manage which newsletters you're signed up for, click here.

This email includes limited tracking for Reuters to understand whether you've engaged with its contents. For more information on how we process your personal information and your rights, please see our Privacy Statement.

Terms & Conditions