Public Markets 3d Briefing
×Market Turmoil and Global Tensions
Asian equities bloomberg.com rebounded with South Korea leading gains after its worst rout on record, as markets regained composure following Middle East conflict volatility. South Korean stocks bloomberg.com surged by the most since 2008 in a roller-coaster week, with bargain hunters returning after panic selling. Korean stocks ft.com faced a lengthy recovery period as momentum broke, with analysts noting it would take time to form a durable equity base.
Goldman Sachs bloomberg.com Chair and CEO David Solomon discussed market reactions to Iran attacks, his views on AI, and monitoring private credit markets for "frothiness." Goldman Sachs Asset Management bloomberg.com Co-Head of Private Credit James Reynolds said the private credit sector remains resilient with few borrowers struggling to meet loan payments. Goldman Sachs bloomberg.com also weighed in on private credit outlook, emphasizing sector stability.
India's rupee bloomberg.com rebounded from record lows as the RBI defended the currency, which fell to a record low the day before. Indian shares bloomberg.com faced fresh uncertainty as traders bought protection against Middle East conflict fallout. India bloomberg.com used record bond swaps to tackle a looming maturity wall, easing pressure from heavy debt liabilities coming due.
Energy and Commodities
Oil prices investing.com climbed amid Iran conflict, with analysts noting a "security premium" in near-term pricing. US-to-Asia oil shipment costs bloomberg.com hit record highs, though some deals were already faltering as rates soared. Iran bloomberg.com continued loading crude at Kharg Island two days after US air strikes, with uncertainty about whether loading would continue.
Energy stocks bloomberg.com rallied as the conflict escalated, with crude prices potentially following a similar trajectory to previous armed conflicts that pushed prices past $100. The International Energy Agency bloomberg.com stood ready to stabilize global oil markets amid the Iran war, noting member countries hold over a billion barrels in emergency stockpiles.
Iron ore bloomberg.com rose as Beijing vowed measures to support the steel sector, renewing pledges to tackle overcapacity in China's world-leading steel industry. Gold prices investing.com climbed on Middle East conflict and a softer US dollar, with investors focused on the evolving geopolitical landscape.
China's Economic Targets and Tech Sector
China bloomberg.com set its lowest growth target since 1991 as the old economic model falters, acknowledging strains in the system powering rapid growth for four decades. The country targeted 4.5-5% GDP growth for 2026, outlining stimulus plans while reflecting a desire to boost domestic demand while limiting fiscal support to specific sectors.
China's tech stock rout bloomberg.com risks deepening on AI costs, with ongoing selloffs in megacap technology stocks showing little sign of easing as investors fret over spiraling spending amid heated competition. Chinese ham producers and real-estate companies wsj.com poured millions into semiconductor companies, trying to buy into the AI boom.
China bloomberg.com plans $44 billion bonds to boost capital at top banks, expanding efforts to fortify the nation's $69 trillion financial system against cooling economic conditions. China's traditional businesses are jumping on the AI bandwagon, with high-rise hog farms going international as livestock producers tout benefits of multistorey buildings.
Regional Markets and Policy
Australian mining heavyweights investing.com slipped on ex-dividend trade, while Australian household spending bloomberg.com rebounded as the RBA weighed another rate hike amid higher energy costs. Australian fund Colonial First State bloomberg.com rethinks US tech exposure as concerns about AI spending continue to weigh on shares.
South Korea and Taiwan wsj.com appear particularly exposed to rising LNG prices, according to MUFG Bank analysis. Malaysia bloomberg.com will likely hold rates as the Middle East war fuels fresh uncertainty, exercising caution amid global economic impacts.
The Philippines bloomberg.com inflation hit a one-year high, potentially curbing further easing ahead of expected price surges for goods. Ecuador bloomberg.com eyes a $4B bond sale return as it navigates regional economic conditions.
Corporate Moves and Market Strategy
Robinhood investing.com launched a new platinum credit card aimed at wealthy customers, expanding beyond its trading app roots. Morgan Stanley investing.com plans to lay off 2,500 employees across the company, according to reports.
OpenAI ft.com pushes to add surveillance safeguards following its Pentagon deal, planning additional protections as it implements the agreement hastily announced. OpenAI investing.com held talks with The Trade Desk to sell ads, exploring new revenue streams.
Pop Mart bloomberg.com shares rose as China voiced support for IP consumption, with the toy retailer benefiting from signals of sector support from China's top economic planner. CoStar executives investing.com signaled confidence with share purchases amid a Third Point battle, capitalizing on strong trading since its December IPO.
Market Sentiment and Investment Flows
Fresh shocks wsj.com haven't deterred retail investors, who keep hitting "buy" through recent stock slides, maintaining their investment strategies despite volatility. Fear index shows traders bracing for more selling in Indian shares as war rages, buying protection against fresh uncertainty.
Chinese mainland investors bloomberg.com persist in buying Hong Kong stocks despite underperformance in Asia, chasing dip-buying opportunities. K Bank bloomberg.com shares jumped in debut as Korean stocks rebounded after the crash, with the digital lender surging in its trading debut.
Defense stocks bloomberg.com surged as Middle East attacks escalated, with military operations underscoring that air and naval assets remain central to military strategy. Airlines bloomberg.com extended flight cancellations as conflict worsened, sending airline stocks sharply lower as fallout widened.
Central Bank and Policy Responses
The Fed's Beige Book bloomberg.com showed a weaker consumer weighing on sales, with US economic activity increasing at a slight to moderate pace across most regions. Yellen bloomberg.com sees the Fed "even more on hold" given Iran conflict risk, noting potential hits to US economic growth and inflationary pressures.
The European Central Bank bloomberg.com's top economist warned that a lengthy Iran war could cause an inflation "spike" and lead to a sharp drop in Eurozone output if energy supplies are disrupted. The ECB bloomberg.com must prepare for a stronger euro if Europe wants to boost the single currency's global status.
South African interest-rate traders bloomberg.com moved to price in a chance of a rate hike later this month as the Iran conflict pushed oil prices higher, reviving inflation concerns.