Morning Highlights: Oil Rises 4%, Gold and Bitcoin Fall, SK Hynix Pulls Back
Oil prices rose following another exchange of strikes between the U.S. and Iran in the Strait of Hormuz / Photo: shutterstock.com
New attacks by the U.S. and Iran have heightened tensions around the Strait of Hormuz, leading to a rise in oil prices and a drop in the value of gold and Bitcoin. SK Hynix shares plummeted by more than 13% following the successful debut of its ADRs in the U.S. Read about these and other topics in our roundup of key events as of the morning of July 13.
Oil Prices Rise Following New Clashes Between the U.S. and Iran
Oil prices rose following another exchange of strikes between the U.S. and Iran in the Strait of Hormuz, according to CNBC. The price of Brent crude rose 4.4% to $79.3 per barrel, while WTI also rose 4.4% to $74.6 per barrel.
Over the weekend, the U.S. reported new strikes on Iranian targets in response to an attack on a container ship attempting to pass through the strait, while Tehran announced strikes on U.S. military targets in the region. Iran announced the closure of the Strait of Hormuz, but U.S. Central Command stated that shipping continues and the strait remains open. At the same time, international maritime services warned of a high security threat and urged vessels to exercise extreme caution.
SK Hynix shares fell more than 13% following the successful debut of its ADRs in the U.S.
South Korean memory chip maker SK Hynix fell more than 13% in trading in Seoul after rising 13% on the first day of trading of its American Depositary Receipts (ADRs) in the U.S., according to CNBC. Analysts attribute this to profit-taking by investors, an increase in the supply of shares following the offering, and uncertainty regarding the company’s fair valuation between its U.S. and South Korean listings.
Experts surveyed by CNBC believe the correction is temporary. In their view, investors are simply reducing their oversized positions in South Korean and Taiwanese chipmakers following a strong rally, while fundamental demand for AI infrastructure and memory remains high and will continue to support SK Hynix shares in the medium term.
Gold and silver prices fell amid escalating tensions between the U.S. and Iran
Precious metal prices fell amid a new escalation in the Middle East, according to Bloomberg. The spot price of gold fell 1.5% to $4,058.18 per ounce. Silver fell 2.9% to $58.11 per ounce. Platinum and palladium prices also declined, while the Bloomberg Dollar Spot Index rose 0.2%.
The rise in oil prices intensified pressure on the market, fueling expectations that the Fed might keep interest rates high for longer to combat inflation.
Bitcoin fell in value as oil prices rose
Bitcoin fell 2.4% to $62,600, dropping below its 200-week moving average—a technical level considered a signal of a possible prolonged bear market, according to Bloomberg. Ether lost 2.5%. Pressure on cryptocurrencies intensified following new U.S. strikes on Iran, which triggered a rise in oil prices.
Investors are also awaiting the release of U.S. inflation data and a speech by Fed Chair Kevin Warsh, which could influence expectations regarding monetary policy, the agency notes. Meanwhile, interest in cryptocurrencies remains strong: over the past week, spot Bitcoin ETFs in the U.S. recorded net inflows of $197.4 million—for the first time in nine weeks.
The Kospi index fell nearly 8%, triggering a trading halt
South Korea’s Kospi index fell nearly 8% during trading, triggering a temporary trading halt, according to Investing.com. The sell-off was led by major technology companies: SK Hynix shares fell more than 13%, Samsung Electronics shares fell more than 9%, and LG Innotek shares fell more than 11%.
The pressure has also spread to the Asian semiconductor sector: shares of Japan’s Kioxia, Murata, and TDK fell by nearly 12%, 10%, and 6%, respectively. Investors are taking profits and are increasingly doubting whether multibillion-dollar investments in artificial intelligence infrastructure will deliver the expected returns, the publication notes.
What's Happening in the Markets
— Japan's broad-based Topix index fell 1%, while the Nikkei 225 fell 2.4%.
— Hong Kong's Hang Seng Index fell 0.3%, while mainland China's CSI 300 Index fell 1.9%.
— In South Korea, the KOSPI index fell 9%, and the KOSDAQ index fell 4.7%.
— Australia's S&P/ASX 200 remained virtually unchanged.
— S&P 500 futures were down 0.6%, Nasdaq Composite futures were down 1.4%, and Dow Jones Industrial Average futures were down 0.4%.
This article was AI-translated and verified by a human editor
