Thanks for joining me. The price of gold has hit a new record high after Iran’s president was killed in a helicopter crash.
The safe-haven precious metal rose 1.1pc to hit $2,440.59 an ounce amid concerns that the death of Ebrahim Raisi could lead to wider instability in the Middle East.
5 things to start your day
1) ‘I have never in my lifetime seen as much anger’: how Ireland’s migration system was overwhelmed | Country’s asylum system at crisis point as it grapples with unprecedented numbers
2) Record immigration behind a third of rent rises | Cost of renting jumps 11pc as additional 430,000 seek homes
3) Virgin Trains targets return to West Coast Main Line | Pressure grows on Avanti as Virgin Group submits open-access application for rail route
4) ‘Socialistic’ London has lost its mojo, says Wizz Air boss | Interview: József Váradi says stock market’s ‘pendulum has swung too far’ to the left
5) Xi and Putin’s love-in is an ominous sign for the West | The leaders’ co-dependency is shaping a powerful anti-Western alliance
What happened overnight
Asian stocks advanced after the Dow Jones Industrial Average closed above 40,000 for the first time on Friday.
Gold hit a record high and oil prices edged higher as investors focused on the Middle East, where a helicopter carrying Iranian President Ebrahim Raisi and other officials crashed in the mountainous northwest reaches of Iran overnight.
China’s market extended last week’s gains after the central bank announced new support for the property industry, including cutting required down payments for housing loans, cutting mortgage interest rates for first and second home purchases, and removing a mortgage rate floor.
The Hang Seng in Hong Kong added 0.5pc to 19,648.19, with its property index up 0.6pc by midday. The Shanghai Composite index advanced 0.3pc to 3,162.08.
China’s central bank left the one- and five-year loan prime rate unchanged at 3.45pc and 3.95pc, in line with expectations.
The one-year LPR serves as the benchmark for most new and outstanding loans in China, while the five-year rate affects the pricing of property mortgages.
In Tokyo, the Nikkei 225 index surged 1.4pc to 39,346.92. Australia’s S&P/ASX 200 gained 0.6pc to 7,862.70. The Kospi in Korea rose 0.6pc to 2,741.55.
Elsewhere, Taiwan’s Taiex edged 0.1pc higher after Lai Ching-te was inaugurated as Taiwan’s new president. Lai is expected to uphold the island’s de facto independence policy from China and seek to bolster its defenses against Beijing, which claims the island as Chinese territory.
In Bangkok, the SET was up 0.3pc.
Insight: Market Reaction to Geopolitical Events
Geopolitical events like the death of Iran’s president in a helicopter crash can have significant impacts on financial markets. In this case, the price of gold, often considered a safe-haven asset, rose to a new record high as investors sought refuge from potential instability. This highlights how global events can directly influence commodity prices and investor sentiment across various asset classes.
Central Bank Policy and Market Performance
The decision by China’s central bank to maintain its loan prime rates and introduce measures to support the property industry contributed to positive market performance in Asian stocks. This illustrates the close relationship between central bank policies and market movements, as investors react to monetary decisions that can impact economic conditions and asset valuations.
