The British pound steadied around a three-week against the dollar on Wednesday although the US completed strikes against Iran in retaliation for Tehran's attacks on three commercial vessels transiting the Strait of Hormuz.
Iran has vowed crushing response with the fragile ceasefire in danger. The threat level to ships crossing the key waterway has increased to "severe", a naval coalition led by the US warned.
Analysts noted that the pound benefited from falling oil prices, which had previously spiked due to the Iran conflict and threatened the economy, which suffers from critically low gas storage levels.
Investor anxieties over a potential spending spree under the frontrunner for PM Andy Burnham have eased, following his commitment to stick to the government's current fiscal rules.
This move successfully allayed concerns that his left-of-centre political background as the former Mayor of Greater Manchester would translate into increased state expenditure and tax cuts.
UK services activity contracted for a 2nd consecutive month in June, posting its weakest performance since January 2023, according to data released by S&P Global.
EBC Financial group analyst says, the pound was about to show a golden cross. It sat at a critical technical make-or-break juncture as a break below $1.3340 may trigger another leg lower.
Asset recap
As of market close on 7 July, among EBC major products, ConocoPhillips shares led gains due to soaring oil prices though JPMorgan adjusted price target on them to $124 from $135.
Intel has raised the prices of its central processing units as upstream costs are spreading from memory chips to processors. But the stock tumbled amid broad semiconductor sector valuation concerns,
The Nasdaq 100 ended sharply lower, largely weighed down by losses in Micron Technology. Speculators place about 50-50 odds that the index will close 2026 above 30,000, a level it first crossed in late May.
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-النهاية-