📬 Daily Newsletter – June 23, 2025
📅 Newsletter for June 23, 2025
🗞️ Financial Summary
Geopolitical Impact on Markets: U.S. strikes on Iran have created uncertainty in the markets, leading to fluctuations in stock futures and oil prices, which initially surged by 20% this month.
Iran's Response: Iran has vowed retaliation following the attacks and has continued hostilities against Israel, with airlines canceling flights to the Gulf region.
Investor Reaction: Some investors had anticipated the escalation, adjusting their stock positions and increasing demand for hedges, which has moderated the impact on stock indices.
Debt Markets: The uncertainty has resulted in rising bond yields, particularly in Europe, where the region is more vulnerable to oil price fluctuations.
Oil Outlook: Should the Strait of Hormuz close, a significant stagflation shock akin to that of 2022 is expected, with crude prices potentially rising to $120 per barrel.
Tesla Initiative: Tesla has launched a driverless taxi service in Austin, Texas, leading to a 1.5% increase in its pre-market shares.
Corporate Movements: Northern Trust gained 5.4% following rumors of merger interest from Bank of New York Mellon.
Apple and AI: Apple is considering acquiring the startup Perplexity AI, reflecting its interest in bolstering its artificial intelligence strategy.
Li Auto Expansion: Shares of Li Auto rose by 5% following the announcement of a new electric SUV launch in September.
Grupo México Transportes Exit: The company is preparing to delist from the Mexican Stock Exchange amid an ambitious expansion plan.
Inflation Concerns: Rising crude prices and geopolitical tensions could hinder interest rate reductions, impacting economic recovery.
Stablecoin Legislation: Circle Internet continues to rise following the approval of stablecoin legislation in the U.S. Senate.
Key Week for the Fed: Jerome Powell and other central bankers will make statements ahead of the release of crucial inflation data in the U.S.
Debt Market: Companies are seeking financing amid geopolitical tensions, with significant debt issuance globally.
Fed Expectations: Traders have lowered their expectations for Fed rate cuts in light of the escalation in the Middle East and its potential impact on inflation.