WTF Dailies June 19, 2025

• Stock markets in Asia edged lower on Thursday while safe havens such as gold and the Japanese yen gained as investors remained on edge over the possible entry of the United States into the week-old Israel-Iran air war.
• President Donald Trump kept the world guessing about whether the United States will join Israel's bombardment of Iranian nuclear sites, telling reporters outside the White House on Thursday, "I may do it. I may not do it." The Wall Street Journal said Trump had told senior aides he approved attack plans on Iran but was holding off on giving the final order to see if Tehran would abandon its nuclear programme.
• Israel claims it has attacked Iranian weapons production sites and key nuclear infrastructure, as the two nations continue their stand-off which started last week. The Israel Defense Forces (IDF) has said the strikes targeted a facility used to manufacture centrifuges in Tehran, which could allow the country to increase the scale and speed of uranium enrichment. The scale of the damage is unclear.
• Meanwhile, the Iranian military has launched several missile and drone strikes of its own at Israel. One strike reportedly included the advanced hypersonic Fattah projectile, which Tehran claims penetrated Israeli air defenses.
• Israeli Prime Minister Benjamin Netanyahu has said Operation Rising Lion – a series of missile attacks on Iran – which has significantly damaged the Islamic Republic’s nuclear program. West Jerusalem claims it has struck key nuclear sites at Natanz, Isfahan, and Fordow, though the extent of the damage remains unclear.
• Iran has reported at least 585 deaths since the hostilities began last Friday. Israeli officials have reported 24 deaths.
• Japan's Nikkei sank 0.8%, with additional downward pressure stemming from a stronger yen, which reduces the value of overseas revenues for the country's heavyweight exporters.
• Taiwan's stock benchmark slid 0.9%, and Hong Kong's Hang Seng  declined 0.8%.U.S. S&P 500 futures pointed 0.4% lower, although most U.S. markets - including Wall Street and the Treasury market - are closed on Thursday for a national holiday.
• The Swiss National Bank said on Thursday the economic and financial outlook is highly uncertain, particularly due to trade and geopolitical tensions, though it noted profitability for Swiss banks improved in 2024, driven by UBS."Several risk factors could amplify the impact of potential negative shocks on global economic and financial conditions," the SNB said in its 2025 Financial Stability Report. The risks include public debt having climbed to near historical peaks globally, and valuations in global residential real estate, global corporate bonds and the U.S. stock market still appearing stretched.
• Brent crude edged down to $76.32 per barrel, but remained not far from the 4-1/2-month peak of $78.50 reached on Friday.
• The yen gained 0.2% to 144.92 per dollar , while the U.S. currency itself was also in demand as a haven, gaining 0.1% to $1.1472 per euro and 0.2% to $1.3398 versus sterling .
• China’s Shanghai Composite index edged 0.3% lower, and the Shanghai Shenzhen CSI 300 dipped 0.2%.
• South Korea’s KOSPI slipped 0.5%, while Singapore’s Straits Times Index fell 0.2%.
• Australia’s S&P/ASX 200 index was largely unchanged on Thursday.
• Nifty50 and BSE Sensex, the Indian equity benchmark indices, opened in red on Thursday following global cues. While Nifty50 was near 24,800, BSE Sensex was below 81,450. At 9:17 AM, Nifty50 was trading at 24,803.25, down 9 points or 0.035%. BSE Sensex was at 81,410.63, down 34 points or 0.042%. Market observers anticipate that Thursday's trading will be influenced by international factors, including the Fed's policy decisions and geopolitical developments.

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