“Even if the situation remains unclear, should it be judged that upside risks to prices outweigh downside risks to economic activity, it will be necessary to thoroughly discuss the pros and cons of raising the policy interest rate,” Ueda earlier this month.

Mumbai: Indian equities extended gains on Monday, with benchmark indices rising 1% after climbing as much as 1.7% during the session, as hopes of a peace deal between the US and Iran prompted traders to pare bearish bets, while easing crude oil prices lifted sentiment.

While the durability of the rally will depend on the finalisation of a deal, analysts said downside risks appear limited for now.

The NSE Nifty 50 gained 231 points, or 1%, to close at 23,853.90, after briefly crossing the 24,000 mark for the first time since May 29. The S&P BSE Sensex advanced 736.38 points, or 1%, to end at 76,264.33. Over the past two sessions, both indices have rallied as much as 3.3%.

“The rally on Monday and Friday was driven by short covering on hopes of a peace deal between the US and Iran, and while the sustainability of gains is not certain, the deal seems to be around the corner,” said Nilesh Jain, VP-Head of Technical and Derivative Research, Centrum Finverse.
The US and Iran said they have reached a new ceasefire agreement that will end a US blockade of Iranian ports and reopen the Strait of Hormuz, ending the months-long conflict that has kept investors on tenterhooks and kept oil prices elevated.

With both sides showing willingness to bring the war to an end, Brent crude futures fell more than 5% to $85.8 a barrel on Monday. Across Asia, South Korea, Japan surged 5.2% and 5%, respectively, while Taiwan gained 2.8%. China and Hong Kong rose 1.6% and 0.5%.
“The reaction in oil prices after the peace deal was announced reassured investors that crude prices are not expected to sustain at elevated levels for longer and triggered a rally,” said Vaiibhavv Chugh, chief executive officer, Abakkus Mutual Fund. “The fear has toned down considerably, and optimism could build further,” he added.Realty stocks led the gains, with the Nifty Realty index surging 4%. The Nifty Consumer Durables and Auto indices climbed 2.9% and 2.6%, respectively.

Foreign portfolio investors bought shares worth a net ₹200 crore on Monday – after 11 consecutive sessions of selling, while domestic institutional investors bought shares worth ₹3,189.3 crore. So far in June, foreign investors have sold shares worth ₹41,967 crore.

“Foreign investors have pared some of their short positions, which contributed to the rally. However, towards the latter part of the session, participants booked some profits in the derivatives market,” said Abhilash Pagaria, Head of Alternative & Quantitative Research at Nuvama Wealth. If the deal is finalised, a significant source of uncertainty could be removed, potentially encouraging foreign investors to increase allocations to Indian equities, he said.

The India VIX volatility index fell 2.5% to 14.4. After spiking to around 29 at the height of the conflict, the gauge has retreated to more comfortable levels, suggesting investor anxiety has eased. “For the gains to be sustainable, Nifty must decisively close above 24,000,” said Jain.

He said intermittent declines could not be ruled out, but the Nifty could gradually move towards 24,500 during the June series if it breaks above the 24,000 mark.

Broader markets outperformed the benchmarks, with the Nifty Midcap 150 and Nifty Smallcap 250 rising 1.5% and 1.3%, respectively. Over the past week, the two indices have gained 1% and 3%.

More than 500,000 packages of macaroni and cheese sold at Aldi stores nationwide have been recalled because they may contain undeclared soy lecithin, a soy-derived ingredient that can pose a risk to people with soy allergies or sensitivities.

According to the Food and Drug Administration, 58,405 cases of Park St. Deli Macaroni & Cheese are affected. Each case contains nine 20-ounce packages, bringing the total number of impacted packages to 525,645.

The plastic tubs of macaroni and cheese were sold inside paperboard sleeves.

FDA ISSUES HIGHEST-RISK RECALL OF ALFREDO SAUCE SOLD IN 41 STATES

BEF Foods Inc., the product maker, initiated the voluntary recall on March 23, and the FDA classified it as a Class II recall on June 10.

A Class II recall means use of or exposure to the product may cause temporary or medically reversible adverse health consequences, or that the probability of serious adverse health consequences is remote, according to the FDA.

Customers are urged not to consume the affected products and to return them to the place of purchase for a full refund.

MORE THAN 17K COFFEE MAKERS RECALLED AFTER DOZENS OF REPORTED BURN INJURIES

Lecithin is a group of chemicals the body uses to move fats, according to the University of Rochester Medical Center.

They are found in various foods, including egg yolks, soybeans, wheat germ, peanuts and liver. Many people know lecithin as the oily film on their frying pan when they use a nonstick cooking spray.

Some people also take them as supplements. They can come in capsules, liquid or granules.

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Lecithin is used in the food industry as an additive to combine foods, with salad dressing being one example.

Soy lecithin emulsifies ingredients like oil and water to blend the salad dressing into a smooth consistency, Judy Simon, a clinical dietitian nutritionist at the University of Washington, previously told USA TODAY.

Oil prices edged higher on Tuesday as traders weighed the lack of clarity surrounding a preliminary agreement aimed at ending the conflict between the U.S. and Iran, while concerns persisted that oil flows through the Strait of Hormuz may not resume as quickly as initially expected.

The rebound followed a sharp selloff on Monday, when oil prices tumbled nearly 5% to their lowest closing level since March 4. The decline came after U.S. President Donald Trump announced that a memorandum of understanding had been agreed to end the U.S.-Israeli war with Iran.

Crude oil price on June 16

Brent crude futures rose 26 cents, or 0.3%, to $83.42 a barrel, while U.S. West Texas Intermediate crude gained 46 cents, or 0.3%, to $81.12 a barrel as of 0108 GMT.
The conflict had led to the closure of the Strait of Hormuz, a key shipping route that normally handles around one-fifth of global oil supply, and resulted in roughly 14 million barrels per day of production being shut in.

However, market optimism has been tempered by the absence of publicly available details of the agreement and the fact that a permanent truce has yet to be negotiated. Initial indications suggest the memorandum could pave the way for reopening the Strait of Hormuz and extending a ceasefire for 60 days, giving negotiators time to address more complex issues, including the future of Iran’s nuclear programme.

Iranian President Masoud Pezeshkian on Monday described the U.S.-Iran memorandum of understanding as an “important step” toward ending the fighting, but said a final agreement to secure a lasting ceasefire had yet to emerge.

Where are prices headed?

Per experts, global oil inventories have been drawn down during the prolonged closure of the Strait of Hormuz and will require time to recover. The stockpiles are likely to decline further before fresh supplies from the Gulf begin reaching the market.

Market participants are now closely monitoring how quickly producers in the Middle East can restore oil output and exports after wartime disruptions. Investors are also watching whether shipping traffic gradually returns to the region.
Analysts cautioned that even if the ceasefire holds, shipping through the Strait of Hormuz may take months to normalize. They added that any damage to energy infrastructure could further delay the recovery process.Last month, Saudi Aramco Chief Executive Officer Amin Nasser warned that disruptions in the Strait of Hormuz could postpone stability in global oil markets until 2027. He said prolonged interruptions could affect nearly 100 million barrels of oil supply every week. Saudi Aramco remains the world’s largest oil producer.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

SINGAPORE: Asian stocks inched up on Tuesday after rallying on the previous session on news of a peace deal between Iran and the U.S., as investors turned their focus to several central bank decisions including an expected rate hike from the Bank of Japan.

Early trading in the region followed a familiar pattern, with markets ‌settling into a ⁠more measured ⁠tone on Gulf developments as the initial excitement over the preliminary agreement between Washington and Tehran began to fade.

Oil prices, which settled at a three-month low overnight, reflected the cautious stance, with Brent crude futures up 51 cents, or 0.6%, at $83.74 a barrel. Shippers in Asia and Europe said rebuilding confidence in resuming transit through the Strait of Hormuz could take weeks.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.2%, with Korean shares leading gains. Japan’s Nikkei 225 was down 0.2%, retreating from a record high as S&P 500 e-mini futures slipped 0.1%.

While U.S. President Donald Trump’s announcement of ⁠a deal with ‌Iran drew initial investor relief on Monday, it also puts Washington on a collision course with Israel.

“While it is an important diplomatic breakthrough that should remove a key source of market volatility, ⁠the durability of the deal is likely to be tested in the future,” analysts from Westpac wrote in a research note. “Many sticking points, including the fate of Iran’s nuclear programme, were left to be resolved in subsequent negotiations.”
Overnight on Wall Street, stocks and bonds rallied on optimism over the deal. The S&P 500 jumped 1.7% and the Nasdaq Composite surged 3.1%, while the Dow Jones Industrial Average and the STOXX 600 both closed at record highs. Beyond geopolitics, traders are awaiting several major central bank decisions, including the Bank of Japan, which is set to raise interest rates to a 31-year high on Tuesday. Deputy Governor Shinichi Uchida will ‌hold a press briefing after the meeting, which Governor Kazuo Ueda will miss because he is undergoing medical treatment.

“We do not anticipate any major changes to the Bank’s assessment of current conditions,” analysts from Mitsubishi UFJ wrote in a research note.

“We expect ⁠Deputy Governor Uchida’s press conference, including the rationale he presents for the rate-hike decision, will be based largely on Governor Ueda’s June 3 speech,” the note added. “Mr. Uchida is also likely to follow the governor’s remarks when discussing future policy decisions.”

The Reserve Bank of Australia will pause its tightening cycle when it meets later, according to a Reuters poll of economists.

The U.S. dollar index, which measures the greenback’s strength against a basket of six currencies, held steady at 99.66, firmly within the tight trading channel in which it has sat all week.

The yield on the U.S. 10-year Treasury bond was up 0.8 basis point at 4.475%. Gold was up 0.2% at $4,313.87.

In cryptocurrency markets, bitcoin was down 0.3% at $66,245.97, while ether slumped 1.2% to $1,793.70.