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June 22, 2026 - 12:47
5 minutes
(Bloomberg) — US stock futures edged lower, finding little support from weaker oil prices following signs of diplomatic headway between the US and Iran.The S&P 500 was set for a weaker open after a long weekend, with contracts dipping 0.2%. Brent crude dropped 1.6% toward $79 a barrel as negotiators for Tehran and Washington agreed on a roadmap for a final deal. The dollar rose 0.1%. Treasuries fell across the curve following Friday’s US holiday.Traders also followed the latest developments in UK politics as Prime Minister Keir Starmer announced his resignation outside 10 Downing Street. The pound erased losses after briefly touching a 2026 low, while gilts rallied as an orderly leadership transition took shape.Oil traders took comfort from evidence of progress in Middle East talks even as President Donald Trump threatened to strike Iran if Hezbollah militants continue to attack Israel. The warring sides established a communication line to avoid incidents, seeking to ensure safe passage for commercial vessels through the Strait of Hormuz.“Even during the midst of the conflict in the Middle East, equities still priced a positive outcome,” said Stephan Kemper, chief investment strategist at BNP Paribas Wealth Management. “It seems logical that markets don’t rally too hard on something which they had already priced to a fair degree.”In the UK, the departure of Starmer is putting Britain on course for its seventh premier in a decade and paving the way for Andy Burnham to replace him. The former mayor of Manchester announced his candidacy hours after Starmer’s resignation and received the backing of Wes Streeting, a potential rival.Starmer said nominations for a new Labour leader will open July 9 and that a contest will be finalized by Sept. 1. The question for investors is the impact on the UK’s finances if Burnham were to become prime minister.“Markets would be watching for Burnham’s pick of chancellor,” wrote Mohit Kumar at Jefferies. “The fear is that Burnham’s policies are left-leaning and if the new Chancellor is not credible, it would raise concerns over deficits and borrowing.”SpaceX shares slid almost 5% in premarket trading, putting the stock on pace for a third straight loss. Chipmakers including Intel Corp. rallied. Getty Images Holdings Inc. soared more than 300% after inking a display partnership with ChatGPT owner OpenAI.Bond traders, recently forced to reposition for the possibility of higher interest rates ahead, are looking to Thursday’s US personal consumption expenditures price index for a read on whether the market’s hawkish stance is warranted.Forecasters expect the index, the Federal Reserve’s favorite inflation gauge, to show acceleration on both a monthly and year-over-year basis in May.What Bloomberg Strategists Say:“UK markets are understandably little changed by Prime Minister Keir Starmer’s resignation. The move was widely anticipated. That leaves markets focused on who emerges as the next prime minister. Andy Burnham is the clear front-runner and markets seem rather settled by that, leaving UK assets more at the mercy of the Fed.”— Skylar Montgomery Koning, macro strategist. Click here for the analysis.Corporate News:Building materials group CRH Plc. is close to its biggest deal ever to acquire competitor Arcosa Inc., the Financial Times reports, citing people familiar with the matter. EasyJet Plc has rejected three separate offers from Castlelake LP, prompting the investment firm to take its latest proposal that values the budget carrier at about £4.74 billion ($6.3 billion) directly to shareholders. Shares rose 2.6% in London. The German and French governments are set to hold equal stakes in KNDS NV, one of Europe’s most important defense companies, as it gears up for an initial public offering in the near future. Some of the main moves in markets:StocksS&P 500 futures fell 0.1% as of 6:44 a.m. New York time Nasdaq 100 futures were little changed Futures on the Dow Jones Industrial Average were little changed The Stoxx Europe 600 was little changed The MSCI World Index was little changed CurrenciesThe Bloomberg Dollar Spot Index rose 0.1% The euro fell 0.1% to $1.1459 The British pound was little changed at $1.3241 The Japanese yen fell 0.3% to 161.71 per dollar CryptocurrenciesBitcoin rose 0.4% to $64,017.46 Ether rose 1.5% to $1,745.77 BondsThe yield on 10-year Treasuries advanced three basis points to 4.48% Germany’s 10-year yield declined two basis points to 2.96% Britain’s 10-year yield declined three basis points to 4.81% CommoditiesWest Texas Intermediate crude fell 0.7% to $75.34 a barrel Spot gold rose 1.3% to $4,208.90 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Subrat Patnaik.©2026 Bloomberg L.P.
