CME GROUP TO LAUNCH ERIS SOFR SWAP OPTIONS ON JUNE 16

US Treasury Secretary Scott Bessent said the Federal Reserve should “wait and see” before cutting interest rates as it assesses the economic impact of the war in Iran, speaking at Semafor World Economy in Washington. He said rate cuts would eventually be appropriate but argued current conditions warrant caution, noting the US economy remained strong earlier this year. Bessent added he would be “shocked” if the European Central Bank raised rates, while saying recent inflation pressures, driven largely by energy costs, are unlikely to become entrenched. He cited US data showing March inflation rising three times faster than February, but said core inflation is easing and expectations remain anchored. Bessent also suggested the Iran conflict could ultimately be viewed as contributing to longer-term stability, while acknowledging growth forecasts may need to be revised downward from earlier expectations above 4%.

HONG KONG STOCKS OPENED HIGHER: HANG SENG +1.14%, TECH INDEX +2.26%. BAIDU INC. +5%, ALIBABA GROUP HOLDING LTD. +4%; TECH LED, WITH FILM AND LITHIUM BATTERY SHARES ALSO HIGHER