Sunset Market Commentary - ActionForex

• Federal Reserve Chairman Kevin Warsh has implemented a leaner communications strategy since taking office in 2026, eliminating forward guidance and shortening FOMC statements. • The new approach shifts the central bank's focus toward current economic conditions rather than signaling the future trajectory of interest rates.

• A new study examines the "added-worker effect," where households increase labor supply during economic downturns to compensate for lost income and security. • Research indicates that recessions can lift married women’s labor-force participation by approximately 0.93 percentage points as secondary earners enter the market.

• Donald Trump has claimed total control over the Strait of Hormuz and is demanding that Iran pay reparations. • The Reserve Bank of Australia has decided to keep interest rates on hold, while Singapore has significantly increased its annual economic growth forecast.

• Samsung and SK Hynix shares rallied following reports that Temasek is considering a strategic investment in the companies. • Oil prices have climbed toward a two-week high due to ongoing Houthi strikes and the continued closure of the Strait of Hormuz.

• European shares remained largely flat as investors weighed mixed corporate earnings, rising oil prices, and renewed geopolitical tensions. • Energy stocks saw gains during the session, while the automobiles and parts sectors experienced declines.

• Indian benchmark indices extended their losses on Wednesday, with the Sensex dropping 615.12 points (0.79%) to 77,539.13 and the Nifty falling 196.85 points (0.80%) to 24,274.85. • The market downturn was significantly driven by pressure on Tata Group stocks following the resignation of N. Chandrasekaran.

• US stock indices showed mixed performance today, with the Dow Jones Industrial Average rising +0.32% while the Nasdaq 100 dipped -0.07% and the S&P 500 remained nearly flat at +0.04%. • Market sentiment was supported by comments from Donald Trump on Sunday, who indicated a preference for increasing economic pressure on Iran over launching further military strikes.

• Brokerages are lowering price targets for Samsung Electronics and SK hynix due to concerns that semiconductor earnings may peak earlier than expected. • SK hynix is seeing significant divergence in analyst valuations, with price targets ranging widely from 2.7 million to 4 million won.

• Global markets experienced high volatility in June as traders feared that geopolitical conflicts and a potential Iranian closure of the Strait of Hormuz would spike oil prices and trigger global inflation. • Oil prices peaked between $75 and $78 per barrel before dropping below $65 following a ceasefire and OPEC+'s decision to increase production by 411,000 barrels per day starting in August.

• The Indian stock market resumed its downward trend, with the Nifty 50 falling 112.10 points (0.46%) to 24,471.70 and the Sensex dropping 388.19 points (0.49%) to 78,154.25. • This decline occurred following a brief one-day recovery and coincided with the weekly Futures and Options (F&O) expiry.

• Indian equities declined on Tuesday, with the Sensex falling 388 points and the Nifty dropping 112 points due to a weaker rupee and rising crude oil prices. • Market analysts have identified 24,400 as a critical support level for the Nifty as investors navigate heightened geopolitical risks.

• Recent economic data highlights NFIB Small Business Optimism in the U.S. and updates on U.S. Existing Home Sales. • A significant mid-year revision showing a doubling of the growth midpoint suggests that AI-linked trade is currently offsetting major energy shocks.