Asia Equities Mixed; Australian Shares Down 0.7%, S&P 500 Futures Edge Lower

## Lead Asian equities closed mixed today, with Australian shares falling 0.7% amid ongoing Strait of Hormuz tensions. US equity futures are slightly lower as markets anticipate upcoming retail sales data. Crude oil prices are up, with WTI gaining 0.92% and Brent rising 0.85%, while the dollar index is down 0.12%. The US 10-year yield is lower by 0.88%. ## Session narrative Today's trading session in Asia saw a mixed performance across equity markets. Australian shares experienced a notable decline of 0.7%, extending their losing streak to a third session, as geopolitical tensions surrounding the Strait of Hormuz continued to weigh on sentiment. This ongoing situation in the Middle East has also impacted commodity markets, contributing to a rise in crude oil prices. WTI crude is up 0.92% and Brent crude has gained 0.85%. Meanwhile, US equity futures are showing slight declines ahead of key economic data releases later today, including retail sales, inventories, and consumer sentiment. In the currency markets, the US Dollar Index is down 0.12%. The US 10-year yield has also moved lower, dropping 0.88%. Precious metals are seeing some pressure, with gold down 0.78% and silver down 0.94%. ## Cross-asset check Equity futures in the US are broadly lower, with S&P 500 futures down 0.01% and Nasdaq futures down 0.12%. The dollar index is trading at 99.84, down 0.12%. The US 10-year yield is at 4.64%, a decrease of 0.88%. In commodities, WTI crude is at 82, up 0.92%, and Brent crude is at 87.81, up 0.85%. Gold is at 4386, down 0.78%, and silver is at 64.39, down 0.94%. Iron ore in CNY fell 2.15%. EUR/USD is up 0.10% to 1.1543, while USD/JPY is down 0.15% to 159.255. ## Themes & continuing stories Geopolitical tensions in the Middle East remain a dominant theme, particularly concerning the Strait of Hormuz. Reports of alleged attacks on ADNOC ships and stalled diplomacy are contributing to higher oil prices and impacting market sentiment, especially in regions like Australia. Central bank commentary is also in focus, with Fed's Goolsbee indicating that the US economy remains stable and inflation readings are improving. The prospect of the Fed steering inflation back to 2% continues to be a key driver for rates and currency markets. The US Treasury Secretary's vow of "unprecedented measures" on Iran adds another layer of geopolitical uncertainty. ## What’s ahead Looking ahead, market participants will be closely watching the upcoming US retail sales, inventories, and consumer sentiment data for further clues on the health of the US economy. These releases are expected to influence US equity futures and broader market sentiment. The ongoing geopolitical developments in the Middle East, particularly around the Strait of Hormuz, will also continue to be a significant factor for crude oil prices and global risk appetite.