Public Markets 3h Briefing
×Market Turmoil
European stocks bloomberg.com plunged as Asian markets tumbled, with the war in Iran amplifying risk aversion across global markets. The S&P 500 fell sharply bloomberg.com for two consecutive days, though midday dip-buying erased much of the early losses. Broadcom bloomberg.com earnings are due after the close, but analysts warn even strong results may struggle against the "AI wall of fear" gripping tech stocks.
Energy & Commodities
Oil prices surged as the Strait of Hormuz became a focal point, with Paul Sankey bloomberg.com warning of a "crisis of shipping" that needs resolution by Friday. European natural gas investing.com prices dropped on reports of secret Iran peace outreach, while aluminum investing.com prices face uncertainty over how long Gulf disruptions will support the market. Gold investing.com fell despite Iran escalation, puzzling traders as Morgan Stanley explains the counterintuitive move.
Corporate News
Wood Group ft.com shares tumbled after the FCA fined the engineering firm £13mn for overstating three years of profits due to "poor operating culture." Bath & Body Works investing.com shares rose as Q4 results beat estimates, though the company reported lower profit amid its strategy pivot. Abercrombie & Fitch investing.com also beat estimates, while GitLab investing.com dipped following a downgrade at Piper Sandler over guidance concerns.
Economic Indicators
The euro zone bloomberg.com unemployment rate unexpectedly declined to a record low as economic expansion outpaces forecasts. Meanwhile, the UK faces a difficult position to help households if energy costs surge, with David Miles ft.com warning that public debt limits government options. The dollar bloomberg.com slid most in a month after reports of Iranian peace outreach, while KOSPI investing.com fell 12% in a single day amid massive foreign investor liquidation.
Geopolitical Developments
NATO defenses investing.com shield Turkey as Iran conflict spills into alliance territory, with Continental bloomberg.com becoming one of the first major companies to warn the war may hit profit. Trump bloomberg.com pledged safe Mideast oil transit as chances of a quick Iran war fade, while EDP bloomberg.com CEO says the energy shock from war is fueling clean power demand. Dassault ft.com warned its Franco-German jet project is "dead" if Airbus refuses to cooperate on the €100bn FCAS program.
Financial Markets
Target investing.com received an upgrade from Bernstein citing expected US tax refunds and Fed rate cuts. Kion Group investing.com got an upgrade from Jefferies after a selloff, with analysts citing limited downside risk. Nexans investing.com shares jumped 6% after Barclays said the selloff was overdone following GSI concerns. Dycom investing.com shares climbed after Q4 earnings and revenue topped estimates.