Global shares gain and oil prices slip as markets eye the Mideast
conflict, await Fed's decision
[June 18, 2025] By
JIANG JUNZHE
HONG KONG (AP) — Global shares were mostly higher Wednesday and oil
prices slipped as investors awaited a decision on interest rates by the
Federal Reserve, which was expected to keep its key interest rate
unchanged for a straight time.
Oil prices continued to gyrate as the conflict in the Middle East
intensified.
U.S. benchmark crude oil fell 84 cents to $72.43 per barrel. Brent
crude, the international standard, lost 86 cents to $75.59 per barrel.
Crude prices had jumped more than 4% on Tuesday
Fighting between Israel and Iran has driven prices for crude oil and
gasoline higher because Iran is a major oil exporter sitting on the
narrow Strait of Hormuz, through which much of the world’s crude passes.
Past conflicts in the area have caused spikes in oil prices, though they
tend to abate in the absence of disruptions in oil supplies.
In share trading, Germany’s DAX rose 0.1% to 23,455.04, while Britain's
FTSE 100 added 0.2% to 8,853.62.
The CAC 40 in Paris picked up 0.2% to 7,701.69.
Japan reported its exports fell in May as the auto industry was hit by
Trump’s higher tariffs, with exports to the U.S. falling more than 11%.
But Tokyo’s Nikkei 225 jumped 0.9% to 38,885.15.
Hong Kong’s Hang Seng dropped 1.1% to 23,710.69 while the Shanghai
Composite Index added less than 0.1% to 3,388.81.
The Kospi in Seoul gained 0.7% to 2,972.19 while Australia’s S&P/ASX 200
shed 0.1% to 8,531.20.
The nearly unanimous expectation among traders and economists is that
the Fed will make no move as it wraps up its policy meeting on
Wednesday. The U.S. central bank has hesitated to lower interest rates
and it has been on hold this year after cutting at the end of last year.
It's waiting to see how much Trump’s tariffs will hurt the economy and
raise inflation, which has remained relatively tame recently and is near
the Fed’s target of 2%.
On Tuesday, U.S. stocks slumped under the weight of higher oil prices
and weaker than expected retail sales in May.
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A dealer watches computer monitors at a dealing room of Hana Bank in
Seoul, South Korea, Wednesday, June 18, 2025. (AP Photo/Lee Jin-man)
 The S&P 500 fell 0.8% and the Dow
Jones Industrial Average dropped 0.7%. The Nasdaq composite fell
0.9%.
Pricier oil can help stocks of companies in the solar industry
because they increase the incentive to switch to alternative energy
sources. But solar stocks tumbled Tuesday on the possibility that
Congress may phase out tax credits for solar, wind and other energy
sources that produce fewer emissions that change the Earth’s
climate.
Enphase Energy dropped 24% and First Solar fell 17.9%.
Treasury yields fell after a report said shoppers spent less last
month at U.S. retailers than the month before. Solid spending has
been one of the linchpins keeping the economy out of a recession,
but part of May’s drop may have simply been a return to more normal
trends.
In April, some shoppers had rushed to buy automobiles to get ahead
of Trump’s tariffs.
Verve Therapeutics soared 81.5% after Eli Lilly said it would buy
the company developing genetic medicines for cardiovascular disease
in a $1 billion deal that could be worth up to $1.3 billion if
certain conditions are met. Lilly’s stock fell 2%.
In currency trading Wednesday, the U.S. dollar fell to 144.97
Japanese yen from 145.29 yen. The euro edged higher to $1.1506 from
$1.1480.
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