Uncertainty surrounding Iran and US tension causes market jitters
Friday, 5 June 2026
Market summary
In mid-afternoon trading, US markets were mixed. The Dow Jones rallied to a fresh high, up 1.7% on Thursday, and the S&P 500 rose 0.5%. Meanwhile, the usually strong Nasdaq underperformed, up just 0.2% at close.
Stocks appeared pressured by rising tensions and resuming activity in the Middle East, this was despite reports that said Donald Trump was reluctant to restart a full-scale war with Iran.
The pan-European Stoxx 600 rose 0.4% and European stocks closed higher on Thursday, following a ceasefire agreement between Israel and Lebanon. Major bourses and exchanges in London, Paris, Frankfurt and Milan closed in positive territory.
Asian markets reversed earlier gains, falling sharply, with uncertainty in the Middle East between the US and Iran unsettling investors in the region.
Japan’s Nikkei fell 1.74% and the Topix declined 1.09%, South Korea’s Kospi slipped 1.25%, Mainland China’s CSI 300 dropped 0.84% and Hong Kong’s Hang Seng index fell 0.93%.
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Back here, New Zealand’s S&P/NZX50 ticked down 0.10% on Thursday, the index’s third drop in a row.
Issues impacting sentiment included continued, conflicting messages about the US/Israel war against Iran, the spectre of new tariffs from the Trump administration, building activity remained weak, and the insurance sector heard from Finance Minister Nicola Willis that a disaster resilience levy was too expensive.
On the flipside, Crown accounts for the 10 months to the end of April showed a far narrower deficit than first forecast. And new credit card fee caps are expected to save businesses as much as $40m a year.
In listed company news, trading in fishing company Sanford was placed on a trading halt before the market opened after it was revealed Ngāi Tahu would halve its stake in the business. Pacific Edge completed its heavily oversubscribed $36.1 million capital raise, and WasteCo’s full-year financial reports showed net losses widening to $12.3m for the year ending March 31, despite a significant increase in revenue.
Fisher & Paykel Healthcare dipped 0.2%, while decliners on the main board included Trade Window Holdings, which fell 5.71%, TruScreen dropped 5.26%, Locate Technologies lost 4.65% and Serko slipped 4%.
Gains were small. 2 Cheap Cars rose 3.06%, South Port advanced 2.29%, Meridian gained 2.07%, Me Today ticked up 2.04% and Port of Tauranga rose 1.98%.
In Sydney, the S&P/ASX 200 dropped 1.13%, led down by lithium and renewable energy producer Vulcan Energy Resources, down 8.59% as the company considers a structural reversal, a transaction structure where a private company or a smaller public company acquires a larger public company. Pantoro Gold lost 8.20% as its share price experienced volatility.
While we slept
Oil prices have fallen 3% to around US$92 per barrel on a report that US President Donald Trump is reluctant to restart a full-scale war with Iran. Trump reportedly told his aides that the fragile ceasefire with Iran was ongoing despite sporadic clashes, and despite it looking like it was on the verge of collapsing earlier this week after Iranian media reported Tehran had cut talks with the US due to Israel military campaign in Lebanon. Trump has “always preferred a diplomatic solution, he has been clear about the consequences if Iran refuses to make a deal”, according to a White House official.
Shares of Universal Music Group have slumped almost 6% as Bill Ackman’s Pershing Square offloaded its stake in the company following two failed takeover bids. The investor proposed to buy the company for $64 billion, which was ultimately rejected. UMG announced on Thursday it had repurchased over 14 million of its ordinary shares owned by various Pershing Square funds, worth 250 million euros or US$289.9 million. Ackman’s stake in Universal Music was worth over US$1.5 billion at an estimated profit of US$600m.
What’s happening today
In today’s The Post, Rob Stock reports Chlöe Swarbrick suffers visible agonies as insurer conference exposes how poorly NZ is preparing for climate change, Tom Pullar-Strecker reports Spark rolls out service to tackle phone scams, believes banks could benefit and Federico Magrin reports the Middle East war triggers major EV surge. Stewart Sowman-Lund reports Huffer hits back after model accuses brand of using his likeness in AI image, Vic Harris analyses whether Willis’ third Budget was the charm for Kiwi women? and in today’s Global Read, AP reports the Trump administration seeks new path forward with tariffs after first attempt hit roadblocks.
Master Builders will today host a post-Budget breakfast.