Europe Asia News

The bulletin published by İkon Menkul stated that Iran carried out missile and drone attacks over the weekend against US military bases in Kuwait and Bahrain, while the United States responded to the attacks. It added that on Sunday the parties agreed to halt hostilities and resume talks on the Strait of Hormuz dispute in Qatar on Tuesday.

The bulletin noted that the number of ships passing through the Strait of Hormuz declined from 70 to 48 between June 26 and 28, highlighting the fragile nature of the ceasefire process.

Oil prices opened the first trading session of the week higher following the weekend attacks, but gains were limited by reports that the ceasefire had been renewed and negotiations would resume. It was also noted that rising oil prices reduced demand for safe-haven assets, leading to a decline in gold prices.

The bulletin further reported that China added 20 Japanese organizations to its dual-use export control list, citing concerns over Japan's rearmament and nuclear ambitions. Among the organizations are subsidiaries of Mitsubishi, Komatsu and Fujitsu.

Japan's retail sales in May increased by 5.3 percent year-on-year, reaching their strongest level since November 2023 and exceeding market expectations. The draft economic plan targets real growth of more than 1 percent, nominal growth of more than 3 percent and investments totaling $2.29 trillion by 2040, while also calling for the Bank of Japan's policies to be aligned with the government's growth objectives.

The bulletin also stated that Goldman Sachs forecast June nonfarm payroll growth at 130,000, above the market expectation of 115,000. Employment gains of 40,000 related to the World Cup are expected to be offset by a decline of 10,000 jobs in the public sector. Monthly wage growth of 0.2 percent and an unemployment rate of 4.3 percent are also expected.

Meanwhile, Isabel Schnabel stated that although the US-Iran ceasefire has pushed energy prices lower, upside risks to food, goods and services inflation remain, suggesting that additional interest rate hikes by the European Central Bank may still be necessary.