International Recap, June 17: Easing Oil Prices and Steady Rate Outlook Help Lift International Markets

The FTSE 100 rose 0.14% to 10,509, while the Nikkei 225 climbed 0.72% to 69,902. Shares in developed-country indexes (ex-U.S.) were lifted by easing oil prices and steady global rate expectations.

International market movers

The FTSE 100 was supported by financials and industrials as oil slipped, with banks such as NatWest (LSE:NWG) helping hold gains. The Nikkei 225 extended its advance after the Bank of Japan's expected rate increase, while AI-related buying and a resilient earnings backdrop added support. The MSCI EAFE tracked that Japan-led risk tone, helped by broad developed-market appetite as oil eased. Sterling and the yen were both in focus, but the main drivers of the moves remained sector- and policy-specific.

What this means for investors

The big global story remains the energy markets and the status of the Strait of Hormuz. The U.S. released some details on the Memorandum of Understanding (MOU) with Iran that could end the conflict, reopen the Strait of Hormuz, and provide sanctions relief for Iran’s crude oil exports.

After overseas markets closed, the U.S. Federal Reserve unanimously left its benchmark interest rate unchanged in a range of 3.5% to 3.75%. While the Bank of Japan did hike its policy rate to 1.0% from 0.75%, the move wasn’t unexpected. It also came as the Nikkei index has been hitting record highs, recently crossing the 70,000 mark for the first time.

Tomorrow’s market action will be driven by investors’ take on the U.S. Fed’s commentary as new Federal Reserve Chairman Kevin Warsh shapes his style of communication with the markets.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.