Asia Markets
US Equity Futures Decline Pre-Bell as Trump Orders US Blockade of Strait of Hormuz After Talks With Iran Fail
US equity futures were lower pre-bell on Monday after President Donald Trump ordered a blockade of the Strait of Hormuz following the failure of US and Iran to reach an agreement in peace talks in Islamabad.Dow Jones Industrial Average futures were 1% lower, S&P 500 futures were down 0.6%, and Nasdaq futures were 0.6% lower."Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz," Trump said in a post on Truth Social on Sunday.Trump said that an agreement was not reached due to Iran's unwillingness to give up its nuclear ambitions, while Iran said the US had made unreasonable demands.Oil prices were higher, with front-month global benchmark North Sea Brent crude up 7.4% at $102.26 per barrel and US West Texas Intermediate crude 7.8% higher at $104.11 per barrel.Existing Home Sales, scheduled for release at 10 am ET, are seen declining 0.8% for March after an increase of 1.7% in the prior month, according to estimates compiled by Bloomberg.In other world markets, Japan's Nikkei closed 0.7% lower, Hong Kong's Hang Seng ended 0.9% lower, and China's Shanghai Composite finished 0.1% higher. Meanwhile, the UK's FTSE 100 was down 0.4%, and Germany's DAX index was lower by 1.2% in Europe's early afternoon session.In equities, a number of energy firms saw stock gains as oil prices once again breached the $100 mark. Exxon Mobil (XOM) shares gained 1.6%, ConocoPhillips (COP) shares increased 2%, and Equinor (EQNR) stock rose 2.2%.On the losing side, Best Buy (BBY) stock fell 4.5% after the company's stock was downgraded by Goldman Sachs to sell from buy.
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