Morning Note: A Round-up of Global Financial Market News.

Market News

The yen extended yesterday’s rally to reach the strongest level since February – Y153 vs. the Dollar before slipping slightly – aided by rising expectations of a Bank of Japan interest-rate increase next week. Finance Minister Satsuki Katayama said that Japan’s FX stance hasn’t changed since its joint intervention with the US. Meanwhile, Japan’s economic growth was revised higher while nominal wages rose by the most since 1997, backing the case for further rate hikes.

Brent crude moved up to $98.50 a barrel as traders watched for details of an Iranian deal with Oman over the Strait of Hormuz, which could tighten Tehran’s control over the crucial waterway. Gold is trading at $4,400 an ounce, while the yield on the 10-year US Treasury 4.80%.

Copper futures climbed to around $6.70 a pound, nearing fresh record highs as expectations of new US import tariffs on the metal continued to encourage traders to redirect shipments toward US warehouses, tightening supplies elsewhere.

Canada’s retaliatory tariffs of 15% to 50% on hundreds of US products took effect, as Mark Carney bets standing up to Trump will pay off. Trump has threatened to bar the sale of Bombardier jets in the US.

The US market was closed for a holiday yesterday – the futures market is currently predicting a flat market at the open this afternoon. In Asia this morning, equities were mainly lower: Nikkei 225 (-1.7%); Hang Seng (-0.3%); Kospi (-0.6%). The FTSE 100 is currently little changed at 10,816, while Sterling trades at $1.3540 and €1.1650.

ASML won commitments from Samsung and TSMC to use its latest semiconductor equipment by 2028 and from 2030 respectively.

Source: Bloomberg