US, Iran Trade Fire as Trump Demands Deal | The Asia Trade 5/8/2026
Speakers
Summary
The video covers the escalation of U.S.-Iran hostilities and its impact on oil prices, Asian markets, and the upcoming Trump-Xi summit. It features analyst views on S&P 500 upside, AUD/USD strength, FX outlook, and the ASEAN summit's response to the energy crisis. Earnings reports from Toyota, Nintendo, and Sony are also discussed.
- U.S. forces struck Iranian targets after attacks in the Strait of Hormuz, threatening a fragile cease-fire.
- Oil prices rose toward $100 a barrel, weighing on Asian equity futures.
- The Trump-Xi summit in Beijing remains on track but uncertainty persists over China's confirmation.
- UBS managing director Xi Qiao is bullish on the S&P 500 and recommends diversifying into Asian AI value chains.
- ANZ's Mahjabeen Zaman expects AUD/USD to reach 0.75 by year-end on energy exports and RBA hawkishness.
- The ASEAN summit in the Philippines focuses on a unified energy crisis response as the region struggles with stagflation risks.
- Japan's March real cash earnings rose 1.0% y/y, decelerating but marking three consecutive months of real wage growth.
- Macquarie Group beat FY net income estimates, driven by commodities trading, but ended its buyback early.
Trade Ideas
S&P 500 will end higher this year
The S&P 500 will end higher this year supported by one of the best earnings seasons in 20 years, advances in AI, and potential for further rate cuts at the end of the year, despite near-term uncertainty from the Iran war and oil volatility.
AUD/USD to 75 year-end
The Australian dollar can appreciate to 75 against the US dollar by year-end, supported by the RBA's hawkish stance even after its latest hike, Australia's status as an energy exporter benefiting from higher oil prices, and the broader expectation of USD weakness driven by U.S. policy uncertainty.
Up Next
This Bloomberg Markets video, published May 08, 2026, features Xi Qiao, Mahjabeen Zaman discussing SPY, AUD/USD. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Xi Qiao, Mahjabeen Zaman · Tickers: SPY, AUD/USD