0513 GMT - Israel's strike on Iran has put geopolitical worries back on the agenda, sparking sizeable risk-off moves, but that doesn't mean market participants should tear up long-term views, says Pepperstone's Michael Brown. While the situation remains highly fluid, he cautions that this market reaction has played out numerous times before. "Financial markets are always incredibly quick to price in geopolitical fear, but tend to be equally quick to discount it again." The bull case for equities remains intact, the senior research strategist reckons. The current weakness offers yet another dip-buying opportunity. Brown continues to be a fan of gold, which keeps proving it deserves a place in portfolios as a hedge against uncertainty, adding: "I'd not be touching crude with a bargepole for the time being." (fabiana.negrinochoa@wsj.com)
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Iron Ore Drops Amid Weak Demand -- Market Talk
0242 GMT - Iron ore prices are lower in early Asian trade amid weak demand. Demand for steel from infrastructure could drop 7% in 2025 given weak order intake from contractors, on top of persistent demand weakness from property, Citi analysts say in a research note. However, positive sentiment from a potential strong order intake in late 2H provides tailwinds for iron ore and steel prices, they say. Meanwhile, investors continue to monitor the development of the Middle East tensions after Israel's strike on Iran, they add. The most-traded iron ore contract on the Dalian Commodity Exchange is down 0.2% at CNY702.5 a ton. (sherry.qin@wsj.com)
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Copper Edges Lower After Moderate U.S. Inflation Data -- Market Talk
0144 GMT - Copper edges lower in early Asian trading. The base metal's prices are unlikely to rise further in the short term, as moderate PPI data in the U.S. reinforced expectations for two Fed rate cuts this year, Nanhua Futures analysts say in a commentary. Demand in China appears to be relatively weak, although supply remains tight, Maike Futures analysts say in a commentary. The three-month LME copper contract is 0.4% lower at $9,666.00 a ton. (tracy.qu@wsj.com)
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(END) Dow Jones Newswires
06-13-25 1136ET
