Markets Today: Resilient Start to Busy Week, Kering Stock Jumps 8%, DAX Bounces off Support

[Redator]

Market participants were eyeing a frantic start to the week following a weekend of back and forth drone and missile strikes between Iran and Israel threatened to spillover into a regional conflict. This coupled with ongoing chatter that Iranian officials were considering closing the straight of Hormuz further added to the anxiety.

However, markets have started the week in a resilient manner with the Asian session brushing off the geopolitical risk for now.

Asian Market Wrap

Asian shares held steady on Monday, while oil prices climbed again as tensions between Israel and Iran continued to escalate. The ongoing conflict has added more uncertainty to the global economy during a week filled with central bank meetings.

For now, investors are watching for updates, and MSCI's broad Asia-Pacific index outside Japan rose 0.3%. Japan's Nikkei gained 1.2%, and South Korea's stocks went up 1.3%.

In China, top stocks increased by 0.1% after data showed retail sales grew 6.4% in May, beating expectations, while industrial output matched forecasts.

For more information on the Asian session as well as positive Chinese data which did aid mainland Chinese stocks, read Asia mid-session: Oil extends gains, Asian equities recovered, and Gold retreated

European Open

Europe's markets opened Monday without a strong reaction to the renewed attacks between Israel and Iran over the weekend.

The STOXX 600 rose 0.2%, recovering slightly after Friday's sharp losses, as investors seemed to believe the conflict would stay contained.

Financial, travel, and energy stocks gained, balancing out weaker performance in defensive sectors like healthcare and utilities, as oil prices and bond yields increased.

In corporate news, reports that Italian executive Luca de Meo might become the new CEO of Gucci-owner Kering made waves. Kering's shares jumped 8.3% on the news, while Renault, where de Meo has been CEO for five years, saw its shares drop over 6%.

On the Commodities front, Gold has fallen around $40 from an overnight high around the $3450/oz mark. The move could be down to some potential profit taking as market participants prep for a busy week ahead that includes a host of Central Bank meetings.

Oil prices are down around 1.35% this morning as concerns around a potential closure of the strait of Hormuz have for now been sidelined. As much as this was a topic over the weekend that garnered a lot of attention, the idea would harm Iran just as much as anyone else. Such a move may materialize should Iran feel like it is running out of options in its current spat with Israel and this could have a huge impact on oil prices.

On the FX front, The dollar stayed steady in a volatile trading session on Monday. It held at 144.29 Japanese yen after gaining nearly 0.4% earlier. The euro rose 0.25% to $1.1583.

The dollar remained unchanged against the Swiss franc at 0.812, while a key index tracking the dollar against six major currencies slipped 0.3% to 97.97. Risk-linked currencies like the Australian and New Zealand dollars saw small gains, while Norway's krone, boosted by oil prices, rose 0.3% to its highest level since early 2023.

Currency Power Balance

Source: OANDA Labs

Economic Data Releases and Final Thoughts

Looking at the economic calendar, today is a quiet day in terms of European and US data ahead of what is a busy week.

Four Central Bank meetings are key this week while we also have other data releases such as US and UK retail sales and GDP data from New Zealand.

Given the ongoing Geopolitical situation there is a chance despite it being a data heavy week, markets may still be driven by overall risk sentiment. This will largely depend on developments around the Israel-Iran situation and whether or not we see further escalation.

For all market-moving economic releases and events, see the MarketPulse Economic Calendar. (click to enlarge)

Chart of the day - DAX

From a technical standpoint, the DAX index has bounced off a key support area to start the week.

An overall improvement in sentiment has played a large part in the rise and needs to be closely watched moving forward.

Last weeks selloff did provide market participants with a better chance to enter at an improved price.

A continuation of the recovery may face challenges at 23629 before the 24000 handle comes into focus.

However, should we see sentiment worsen then there is every possibility of further losses.

Immediate support rests at 23189 before the 50-day MA at 22960 comes into focus.

DAX Daily Chart, June 16. 2025

Source: TradingView.com (click to enlarge)

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