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Chapter 1: What is the main topic discussed in this episode?
a listener production.
It was short-lived, but oil prices touched a level not seen since the war began. Wall Street rebounds, so what have chips got to do with it?
And how will all this play into our trading day? Hello, good morning. I'm James Gruber.
Chapter 2: What recent developments have affected oil prices?
And I'm Gillian Bowen. It's Friday the 19th of June, and this is the morning edition of the ComSec Market Update.
Well, we've made it to the end of the week. Happy Friday or Friday, as I like to say, and welcome if this is the first time you've joined us here on the CompSec Market Update podcast. Well, James, we've been talking about the Strait of Hormuz for months and the lack of oil flowing through there.
Chapter 3: How did Wall Street react to recent events?
But according to the US Vice President, overnight, some 12.5 million barrels of crude sailed through the key maritime route. This follows the US and Iranian presidents on Wednesday signing a memorandum of understanding to end their war. That is two days earlier than we were expecting.
It's still going to take some time for supplies to return to pre-war levels, though, but the news was enough to cause oil prices to fall earlier in the day before recovering, which we'll talk about in more detail shortly. Right.
Well, and you could see that optimism also flowed through to Wall Street. It's rebounded after yesterday's falls. So the war developments were being considered by investors, but they're also still mulling over the future of interest rates in the US after comments by the new Fed chair earlier in the week.
And also the tech sector was back in focus off the back of an announcement by Donald Trump on chip manufacturing in the US.
As for our share market, the ASX is poised to open lower with index futures down 0.5%. Yesterday, the ASX 200 closed down, dropping 0.6% to 8,911 after setting a new 20-day high. The bottom performing stocks were Aurobanda Minding and Pentoro Gold down more than 7% and 6% respectively. Over the last five days, the index has gained more than 3%.
So if we turn to commodities, there have been some big movements during Thursday's trade. Where have things settled, James?
Well, today the miners here may have a tough time given the high US dollar and slumping commodity prices. On those commodity prices, back to oil prices, which we mentioned earlier, they touched their lowest since before the start of the Iran war earlier in the day following the interim deal to end fighting. but they recovered. Brent crude futures settled 0.5% higher at US$79.95 a barrel.
Meantime, base metal prices were lower on that stronger US dollar. Copper futures lost 1.7%, while aluminium futures fell 0.7%. Gold futures slumped after a hawkish US Federal Reserve lifted the US dollar. The futures settled more than 3% lower at US$4,246 an ounce. Iron ore futures were flat down 0.1% to 101.14 US dollars an ounce.
So let's then have a look at those currencies. They were mixed against the US dollar. The euro dipped 0.4% to 1.1458 US dollars. The Japanese yen dropped 0.5% to 161.43 Japanese yen. The Aussie dollar, though, was flat at 70.15 US cents. So if we head to Wall Street now to get the final figures, the Dow Jones Index finished up 0.1%, the S&P 500 was 1.1% higher, and the Nasdaq climbed 1.9%.
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