Public Markets 3d Briefing
×Market Volatility and Geopolitical Impact
US stocks bloomberg.com rebounded Wednesday morning as better-than-expected labor market data and an expansion in services activity helped offset concerns about the Iran conflict. The S&P 500 fell sharply bloomberg.com for two consecutive days as the war in the Middle East turned investors risk averse, though dip buyers rode to the rescue midday. Citadel Securities bloomberg.com analyst Scott Rubner turned bullish on US stocks, citing fundamental market analysis that suggests now is the time to buy despite ongoing volatility.
South Korean stocks ft.com suffered their worst one-day drop as the conflict rocked Asian markets, with the Kospi index plunging 12% amid massive foreign investor liquidation. Gulf insurance costs ft.com soared 12-fold despite Trump guarantees, with shipowners quoted millions of dollars in premiums as brokers grappled with escalating risk. Container shipping companies have begun halting bookings wsj.com and diverting vessels in response to increasing security risks in the Middle East.
Oil and Energy Markets
Oil storage bloomberg.com is filling fast in the Middle East with Hormuz blocked, creating a tense countdown for oil producers across the region. The Iran war has blocked the region's main export artery, filling countries' storage tanks and threatening output cuts if the situation persists. Jet fuel prices bloomberg.com are soaring around the world as oil traders grapple with the fallout of the conflict, adding to wider concerns about global inflation.
Aluminum prices bloomberg.com surged to their highest since 2022 after Aluminium Bahrain BSC suspended deliveries to some customers under force majeure clauses. European natural gas prices investing.com dropped amid reports of secret Iran peace outreach, while US LNG producers ft.com rushed to seize on surging gas prices triggered by the conflict, with Venture Global and Cheniere Energy looking to bring on extra capacity as prices surge in Europe and Asia.
Fixed Income and Credit Markets
Treasuries bloomberg.com deepened their selloff as geopolitical unrest in the Middle East and surging oil prices roiled US government bonds. The rout showed Iran conflict reigniting inflation worries, with benchmark yields rising as much as 11 basis points. Muni bonds bloomberg.com saw their biggest decline since the tariff-fueled selloff, with yields rising amid the flight to safety.
Goldman Sachs bloomberg.com sweetened terms further on a downsized $1.25 billion financing tied to chemical maker Arclin Inc.'s acquisition of DuPont de Nemours Inc.'s Aramids business amid ongoing market uncertainty. Ares Management bloomberg.com partner Julie Solomon said the higher interest rate environment has created discipline in real estate markets, while Blackstone bloomberg.com recorded net inflows for its $55 billion real estate fund for the first time since 2022, signaling rebounding sentiment.
Corporate and Technology
Moderna investing.com shares jumped as a settlement removed a major legal overhang, while CrowdStrike investing.com, Nvidia and other tech stocks rose premarket. Broadcom bloomberg.com earnings are the latest to try to climb the AI wall of fear, with Wall Street expecting strong results despite recent trading patterns suggesting even surpassing high expectations may not reverse stock weakness.
Nvidia-backed ft.com 'open' AI startup Reflection AI is courting investors at a $20 billion-plus valuation as the Trump administration seeks US rivals to China's DeepSeek. Navan bloomberg.com unveiled an AI 'executive assistant' aimed at helping the corporate travel-booking platform win more business customers. SpaceX bloomberg.com and x AI are set to repay roughly $17.5 billion of debt as the social network X and AI startup prepare for growth.
Defense and Infrastructure
Morgan Stanley bloomberg.com sees huge flows into defense as funds drop limits, with sustainable investing funds set to become meaningful backers of the defense industry as geopolitical tensions redefine ESG investing. South Korea's bloomberg.com biggest arms-maker by revenue made a clear case for deepening its Middle East foray as threats abound, with the company's stock surging 20% to record highs amid the conflict.
Regulatory and Policy Developments
The Bank of Canada wsj.com urged regulators to play catch-up on private-credit risk, saying global authorities must step up surveillance of lending by nonbank players like hedge funds and institutional investors. The Federal Reserve ft.com granted Kraken access to the payments system in a first for a crypto group, allowing the digital assets company to connect directly into key parts of the central bank's infrastructure.
Fed Governor bloomberg.com Kamakshya Trivedi said the central bank can still deliver two interest-rate cuts if there is a quick resolution to the Iran conflict, as inflation would trend down. However, BCA investing.com warned that an energy shock could flip the US House to Democrats, while KeyBanc investing.com shuffled its chemicals playbook amid the ongoing Iran conflict.
International Markets
African dollar bonds bloomberg.com are hitting by the Iran war as investors take flight, with spreads widening and borrowing costs rising across the continent. The UK house price recovery investing.com continued with a 0.3% rise in February, while Vistry ft.com shares plunged 20% as the UK housebuilder warned of lower margins. Clean Max bloomberg.com shares tumbled 18% on their first day of trading, making it the worst debut in more than four years for a similar offering.
Norway's wsj.com Boliden halted mine expansion plans after a new Finnish mining tax, warning the changes would result in an estimated €20 million to €30 million in extra annual costs. Dutch real estate fund bloomberg.com Vesteda Residential said almost all its investors are planning to reduce or sell their holdings after a tax change left foreign investors facing higher taxes.