World shares are mixed following signing of US-Iran deal on ending the
war
[June 18, 2026] By
ELAINE KURTENBACH
BANGKOK (AP) — World shares were mixed on Thursday, with benchmarks in
Japan and South Korea setting fresh records, after the U.S. and Iran
signed their initial agreement ending the war.
The rally in Asia followed a retreat Wednesday on Wall Street driven by
speculation the Federal Reserve may raise interest rates this year to
curb inflation.
U.S. futures were higher early Thursday, while oil prices fell.
Leaders from the U.S. and Iran signed the deal on a permanent end to
hostilities that starts a 60-day negotiating clock to reach a final deal
on the future of Iran’s nuclear program. In the meantime, it calls for
Tehran to dilute its stockpile of highly enriched uranium.
The deal waives U.S.-backed sanctions on the country, immediately
allowing Iran to sell its oil freely in a major concession from
Washington, according to details released by both countries.
The news came after U.S. markets closed with losses for the day.
In early European trading, Germany's DAX edged 0.2% higher to 24,987.35,
while the CAC 40 in Paris edged 0.1% lower, to 8,424.47. Britain's FTSE
100 shed 0.8% to 10,422.40.
The future for the S&P 500 was up 0.9%, while that for the Dow Jones
Industrial Average gained 0.6%.
During Asian trading, Tokyo's Nikkei 225 resumed its climb, gaining 1.7%
to a new closing high of 71,053.49. It topped 70,000 for the first time
this week and is still gaining thanks to hopes for an end to the war and
strong buying of high-tech shares due to the artificial intelligence
boom.
"This is very broad-based rally, I believe it’s actually showing some
confidence that the Japanese economy is going to recover further from
the ... the end of the war, and presumably the oil prices in the near
future,” said Neil Newman, head of strategy at Astris Advisory Japan.
South Korea likewise has been setting records, gaining 2.3% to 9,063.84.
The Kospi has roughly tripled in the past year, helped by gains for
computer chipmakers Samsung Electronics and SK Hynix. Samsung's shares
rose 4.6% and those of SK Hynix gained 6.5%.
Taiwan's Taiex jumped 1.3%.
In Hong Kong, the Hang Seng lost 2.1% to 23,792.35, while the Shanghai
Composite index edged 0.4% lower to 4,090.48.
Australia's S&P/ASX 200 slipped 0.6% to 8,911.10.
[to top of second column] |
A statue is placed on a bench near monitors showing Japan's Nikkei
225 index, hanging in a business building in Tokyo, Thursday, June
18, 2026. (AP Photo/Hiro Komae)
 On Wednesday, the S&P 500 slumped
1.2% after the Fed released projections showing nearly half its
policymakers foresee at least one increase to its main interest rate
in 2026.
The Dow dropped 1% and the Nasdaq composite sank 1.3%.
Higher interest rates can tap the brakes on inflation, but they also
slow the economy and hurt prices for investments. For much of the
past year, the expectation has been that the Fed would be cutting
rates.
In his first news conference as head of the U.S. central bank, Kevin
Warsh, did not give a forecast for where the federal funds rate may
end 2026. He said he’s considering a revamp of how the Fed
communicates with financial markets and U.S. households and
businesses.
One of his first moves was to end the inclusion of hints in Fed
statements about where interest rates may be heading in the future.
In the stock market, SpaceX erased an early gain and fell 4.9% for
its first loss since its ballyhooed debut on the U.S. stock market
last week.
Drops of 3.8% for Microsoft, 3.5% for Amazon and 1.3% for Nvidia
were three of the heaviest weights on the S&P 500.
A report said revenue at retailers across the country grew at a
faster pace in May than economists expected.
Oil prices were steadier Wednesday following slides earlier in the
week on optimism about the tentative U.S.-Iran deal to get the
global flow of oil going again. Iran is set to take steps to reopen
the Strait of Hormuz, allowing oil tankers to deliver crude from the
Persian Gulf again and hopefully relieve inflationary pressures.
Early Thursday, the price for a barrel of Brent crude oil fell 1.9%
to $78.05. It’s still above its roughly $70 price from before the
war, but it’s well below its $100-plus price from a few weeks ago.
U.S. benchmark crude slipped 2.1% to $74.43 per barrel.
The U.S. dollar fell to 160.63 Japanese yen from 160.65 yen. The
euro was trading at $1.1510, up from $1.1501.
___
Senior Producer Mayuko Ono contributed to this report.
All contents © copyright 2026 Associated Press. All rights reserved |
