South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
European Central Bank Chief Economist Philip Lane warned that the ongoing Middle East conflict could create long-lasting inflationary pressure, even if the war is resolved quickly. Speaking at a conference hosted by the Bank of Japan in Tokyo on Thursday, Lane said rising energy prices may continue to impact global economies due to structural changes in energy markets.
Lane explained that while oil prices have historically fallen back after sudden spikes, the current situation may be different because countries are rebuilding energy inventories and shifting toward alternative energy strategies. According to him, the sharp decline in global oil supply has so far been softened by existing inventories, but the broader economic effects are likely to remain.
He noted that higher energy costs could trigger secondary inflation effects across multiple sectors, leading to broader price increases. However, Lane emphasized that today’s economic environment differs from the inflation surge seen four years ago during the post-pandemic recovery and the Ukraine war, when supply chain disruptions and strong consumer demand rapidly pushed prices higher.
Financial markets currently expect the ECB to continue raising interest rates, with investors pricing in at least two additional rate hikes over the next year. Some analysts also see the possibility of a third increase if inflation remains persistent. Economists surveyed by Reuters, however, remain more cautious and expect rate cuts to begin by mid-2027.
Lane stressed that central banks must carefully balance their response to energy-driven inflation. While policymakers should recognize the risks posed by supply shocks, they must avoid overreacting with aggressive monetary tightening. He added that maintaining public confidence in long-term price stability is essential to preventing inflation expectations from becoming entrenched.
Brent crude oil prices rose 2.6% to $94.65 following continued geopolitical tensions, further increasing concerns over global inflation and economic stability in 2026.
