World shares are mixed and oil trades below $80 on optimism over interim
US-Iran war deal
[June 17, 2026] By
CHAN HO-HIM
HONG KONG (AP) — World shares were mixed and oil was trading below $80 a
barrel on Wednesday as investors watched for details on the interim
agreement between the U.S. and Iran to end the war.
U.S. futures were also trading mixed ahead of a decision by the Federal
Reserve on interest rates.
In early European trading, Britain's FTSE 100 edged 0.2% lower to
10,471.84, following official data that showed U.K. inflation was steady
in May at 2.8% even as fuel prices increased. Germany's DAX fell 0.3% to
24,829.58, while France's CAC 40 was up 0.2% to 8,465.32.
Asian stocks were mostly higher with markets in Japan and South Korea
setting new records. Tokyo’s Nikkei 225 gained 0.7% to 69,902.25, after
reaching an intraday high of 70,125.75 following news that Japan’s
exports jumped 17% in May from a year earlier, helped in part by strong
demand for high-tech products.
South Korea’s Kospi gained 1.6% to 8,864.24, also closing at another
all-time high, with big technology stocks climbing despite a sell-off of
artificial intelligence-related shares on Wall Street. Samsung
Electronics, the country’s most valuable company, was up 1%. Chipmaker
SK Hynix jumped 5.8%.
Hong Kong’s Hang Seng lost 0.7% to 24,312.16, while the Shanghai
Composite index rose 0.4% to 4,108.08.
Australia’s S&P/ASX 200 climbed 0.5% to 8,966.30.
Taiwan’s Taiex added 0.2% and India’s Sensex rose 0.3%.
Oil prices steadied after falling sharply earlier on optimism over a
possible end to the war and reopening of the Strait of Hormuz, crucial
for oil and gas transport worldwide. But challenges remain, including
whether the deal includes Israel’s withdrawal from Lebanon.
Brent crude, the international standard, edged 0.1% higher to $79.05 per
barrel early Wednesday after falling more than 5% on Tuesday. It was
above its roughly $70 a barrel level in late February, before the war
started.
Benchmark U.S. crude was nearly unchanged at $76.02 a barrel.
“Normalizing (oil) flows will take time,” economists at HSBC wrote in a
note this week. “Hurdles include mine clearance, insurance
reinstatement, emptying excess Gulf oil storage, repositioning ships,
and restarting idled production fields.”
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A currency trader stretches near a screen showing the Korea
Composite Stock Price Index (KOSPI) at the foreign exchange dealing
room of the Hana Bank headquarters in Seoul, South Korea, Wednesday,
June 17, 2026. (AP Photo/Ahn Young-joon)
 Later in the day the Federal Reserve
will wrap up a two-day policy meeting, the first under its new chair
Kevin Warsh. It is widely expected to keep its benchmark interest
rate unchanged despite pressure from U.S. President Donald Trump to
cut rates.
Worries over higher prices due to the Iran war may lead the Fed to
stand pat, since lower rates could fuel higher inflation.
“With weak wage growth and rent growth, underlying forces are
pointing to inflation falling sharply once the energy price shock
recedes. We don’t expect the Fed to hike rates in 2026,” Preston
Caldwell, chief U.S. economist at Morningstar wrote in a commentary.
“We expect the Fed to resume cutting in 2027.”
Early Wednesday, the U.S. dollar fell to 160.15 Japanese yen from
160.42 yen. The euro was trading at $1.1601, down from $1.1608.
On Tuesday, Wall Street's benchmark S&P 500 fell 0.6% and the Dow
Jones Industrial Average added 0.6%, hitting another all-time high.
The technology-heavy Nasdaq composite dropped 1.2% to 26,376.34
following losses of some big tech stocks over renewed worries about
an AI bubble.
Shares of Nvidia fell 2.4%. Chipmaker Broadcom dropped 4.4% and
Micron Technology lost 6.2%.
SpaceX, Elon Musk’s rocket company, was up 4.8%, gaining for the
third straight day since its Wall Street debut.
Yum Brands gained 1.9% after it announced it is selling Pizza Hut
for $2.7 billion, with most restaurants purchased by U.S.-based
private equity firm LongRange Capital.
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AP Business Writer Elaine Kurtenbach contributed to this report.
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