Shares flat in Asia before Iran sanctions news, Nvidia results

Asian share markets remained stable on Monday as investors awaited details of imminent US sanctions against Iran, which are set to be announced later in the day. Oil prices experienced a slight decline, with Brent crude falling 1.0% to $93.43 and US crude dropping 1.1% to $86.14. The Canadian dollar also saw a drop in value due to the looming trade war with its southern neighbor.

The tech sector braced for Nvidia's results on Wednesday, with analysts anticipating a nearly doubling of quarterly revenue to around $92 billion and full-year earnings guidance ranging from $103 billion to $105 billion. Market participants are eager to receive clarity on the outlook for US interest rates when Federal Reserve Chairman Kevin Warsh speaks in Jackson Hole, Wyoming, on Friday. However, Warsh has a history of avoiding forward guidance, which may disappoint investors.

Bruce Kasman, the chief economist at JPMorgan, stated that market participants are underwhelmed and expect Warsh to focus on aspects of his "regime change" agenda at the event. The Federal Reserve has been gradually shrinking its balance sheet, and the committee paid attention to it in the July minutes. Consequently, the most likely topic for Warsh to address could be the balance sheet itself.

Expectations for a potential interest rate hike by the Federal Reserve have reached around 40%, with markets pricing in a move by December. However, these odds might change based on the US inflation figures released this week, with median forecasts predicting core inflation to stay at 3.3% in July. Warsh will likely face questions regarding Treasury Secretary Scott Bessent's recent announcement of a potential doubling of bond buybacks, aimed at curbing rising yields and easing financial conditions in the economy.

Despite Bessent's efforts, 30-year yields remain close to their 19-year peak of 5.3371%, indicating stretched valuations.