Public Markets 3d Briefing
×Market Turmoil Amid Middle East Conflict
Stocks wsj.com tumbled after a weak jobs report showed the US unexpectedly lost 92,000 jobs in February. The Dow industrials dropped about 550 points, with the S&P 500 and Nasdaq both down about 1%. Treasury yields wsj.com surged as inflation worries pushed the 10-year Treasury yield back above 4%, marking the worst weekly loss for bonds since April.
Oil prices bloomberg.com jumped sharply as traders warned $100 oil is imminent if the Iran war keeps raging. Crude prices in Europe surged as aggressive buying by Asian refiners tightened the global market. The Strait of Hormuz traffic came to a near halt, with Aramco shifting to using the Red Sea route for shipments. Dollar bloomberg.com is heading for its best week since 2024 as the ultimate safe haven amid the Middle East conflict and skyrocketing oil prices.
Private Markets and Deal Activity
Cerebras Systems bloomberg.com has picked Morgan Stanley to lead its initial public offering, mounting a renewed attempt to go public as an artificial intelligence chipmaker. Meanwhile, BlackRock bloomberg.com curbed withdrawals from one of its biggest private credit funds after concerns about liquidity stress in the HY bond market. Pimco bloomberg.com warned that private debt should face a "full-blown default cycle" as direct-lending vehicles have loosened underwriting standards since the 2008 financial crisis.
Braskem bloomberg.com shares are set for a potential takeover as Brazil's antitrust authority approved a transaction allowing asset manager IG4 Capital to buy a controlling stake. In Mexico, Braskem Idesa bloomberg.com is in talks with creditors for finance that would fund the company through a potential Chapter 11 bankruptcy proceeding in the US.
Regional Market Impacts
South Korean equities bloomberg.com bounced back after their biggest one-day slump on record, as bargain hunters returned to a market battered by panic selling. European stocks bloomberg.com posted their biggest gain since November on increased investor optimism for a short-lived Middle East conflict. However, UK mortgage rates bloomberg.com are set to get pricier as swap rates rise on Iran war fears, fueling concerns over fresh increases in mortgage costs.
Colombia's local debt bloomberg.com rallied on oil surge, converting from the worst performing in emerging markets to the leading gainer as the price of its main export commodity soared. Malaysia's currency bloomberg.com has come under pressure, though the Second Finance Minister says the country remains within safe economic forecasts.
Regulatory and Policy Developments
Wall Street regulators bloomberg.com are discussing plans to move into the same building complex in Washington just steps from the US Capitol. The SEC would like companies to stop filing for 5x leveraged ETFs amid market volatility concerns. NYSE bloomberg.com agreed to pay a $9 million fine to settle SEC allegations about a 2023 market outage that led to botched market opens and wild price swings.
Energy Secretary Wright bloomberg.com called to reopen the Indian Point nuclear plant north of New York City, saying it's needed to meet surging power demand. Meanwhile, Qatar's LNG export facility bloomberg.com remains largely intact according to satellite analysis, indicating recent drone strikes missed key production equipment.
Sector-Specific Developments
US airline stocks bloomberg.com are set to slip into a bear market as Wall Street warns that the war in the Middle East threatens to dramatically squeeze profits by driving up fuel costs. Defense contractors bloomberg.com are seeing increased interest as Bank of America steers clients to buy HALO stocks - "hard assets, low obsolescence" plays amid geopolitical tensions.
Aluminum supply shock bloomberg.com brought massive options bets into the money as the war in Iran sparked a sharp rally in prices. A huge aluminum options trade has delivered a windfall after the appearance of the position stunned dealers last week.
Corporate News and Restructuring
Medline Inc. bloomberg.com shareholders raised $3.1 billion in a share sale, capitalizing on the medical supplier's strong trading since its IPO in December. Brightline Trains Florida LLC bloomberg.com faces potential debt restructuring within six months as thinning reserves and negative cash flows prompted a downgrade from S&P analysts.
MultiChoice Group bloomberg.com will discontinue the loss-making Showmax streaming service developed by the South African pay-TV operator after Canal+ SA bought the company last year. Susquehanna-backed BlockFills ft.com is preparing for restructuring after being sued by one customer and disclosing accounting failures to potential investors.
International Developments
Saudi Arabia investing.com is increasing diplomatic efforts with Iran to contain the conflict, while UAE ambitions ft.com face a test as Dubai's status as a metropolis of peace and stability comes under scrutiny. China ft.com is leaning on Russian oil as the Iran crisis chokes supply, forcing Xi Jinping closer to Vladimir Putin.
Bangladesh bloomberg.com is preparing to reduce deliveries to petrol pumps as the country tries to stretch existing reserves amid the Middle East conflict. India ft.com received a 30-day waiver to ease sanctions on buying Russian oil as energy prices soar. Indonesia and India bloomberg.com are supporting local currencies as the Iran war hits emerging markets, with central banks intervening in foreign-exchange markets.