Public Markets 24 Hours

Last updated: March 25, 2026, 2:30 PM ET

Geopolitical Tensions & Energy Markets

Global markets registered cautious optimism as US diplomatic efforts spurred a drop in crude prices, with oil futures falling on signs of progress toward a resolution of the Middle East conflict. This easing sentiment fueled a rally in equities as markets wrapped up, though volatility in energy commodities continues to confound planning for production over the coming months. In response to supply fears stemming from the Iran war, the UK Business Secretary approved a £100mn plan to temporarily restart the Ensus carbon dioxide plant in the north-east of England. Meanwhile, African nations, including South Africa and Kenya, warned residents against hoarding fuel despite fears of shortages, even as other Asian counterparts began rationing supplies.

The energy security fallout continues to reshape supply chains, with Saudi Arabia ramping up crude shipments from Yanbu terminals to divert flows away from the Strait of Hormuz. This disruption has led chemical giant BASF to sharply raise prices again due to escalating costs linked to the conflicts involving the US and Israel. In the US, the Trump administration will waive E15 gasoline from volatility requirements this summer, expanding sales and benefiting corn farmers. Furthermore, the UK’s renewables output hit a record high on Wednesday, with wind and solar generation helping to mitigate the immediate impact of the Middle East war on local power costs.

Fixed Income & Central Banks

Treasury yields fell alongside oil prices as investors focused on potential US-Iran de-escalation talks, supporting a rally in Japanese government bond futures on hopes of resolution. However, market structure remains strained, as strategists at Morgan Stanley noted less liquidity in the Treasury market, observing characteristics of forced selling in two-year notes. The Federal Reserve’s finances are showing signs of recovery, having posted an $18.7 billion loss in 2025, an improvement following its run of pandemic-era stimulus-related losses. On the regulatory front, proposed changes to bank capital rules could incentivize lending into the private credit space, raising concerns about liquidity at the gates of non-bank lending.

Corporate Dealmaking & Private Equity

Private equity giant KKR struck a deal to acquire the U.S. bakery chain Nothing Bundt Cakes from Roark Capital, the owner of Dunkin’. In Europe, bidders including KKR and GIP are vying for Patrick Drahi’s XpFibre network, with offers landing between €6bn and €8bn as Drahi seeks debt reduction. Separately, Brookfield Asset Management and Caisse de Depot agreed to acquire Canadian renewable energy firm Boralex Inc. for C$9 billion (US$6.5 including debt. Meanwhile, Wall Street dealmakers believe M&A activity is set for long-term growth, as Goldman Sachs sees massive capital pools ready to deploy despite current volatility.

Technology, Media & Regulation

Meta and Google were found negligent by a jury in a landmark US case concerning social media addiction, with the Instagram owner ordered to pay the majority of a $3 million damages award relating to harm to a young user’s mental health due to addictive app designs. In the AI sector, Chinese artificial intelligence stocks rallied following state media reports touting a sharp increase in domestic model adoption and token usage. Separately, OpenAI pulled the plug on its Sora video-making tool as it reassesses spending ahead of a potential blockbuster IPO. The financial technology sector may see real-time settlement soon, as executives push the concept of tokenised stocks making trading seamless and nearly invisible to users.

Industry & Sector Moves

The chip industry has become a market monster, with seven of the world’s 25 most valuable firms now hailing from the semiconductor sector, led by the influence of Nvidia. In the video game space, investors are driving up the price of Electronic Arts’ new dollar debt which priced earlier this week to support its record $15 billion buyout. In aviation, British Airways is offering pilots a financial incentive to reduce fuel consumption, attempting to manage soaring operating expenses amid high oil prices. Conversely, the EV rollback continues, with Honda and Sony scrapping their luxury EV venture, casting doubt on the future of their joint product development.

Global Economy & Policy

The escalating war is dimming the US economic outlook, causing Wall Street analysts to cut forecasts for this year and raise projections for inflation and unemployment, increasing recession odds. Foreign borrowers are increasingly choosing mainland China as a fundraising hub, with Yuan bond issuance surging this month, appealing due to a local market less susceptible to geopolitical shocks. On the regulatory front, the UK’s Financial Conduct Authority eased supervision for audit firms in response to quality improvements, while in Germany, the Finance Minister wants to mandate joint ventures for foreign firms operating locally. Meanwhile, India set climate goals that remain conservative regarding targets for renewable energy adoption, reflecting its focus on continued economic expansion.