Public Markets 3d Briefing
×Market Turmoil and Energy Crisis
US stock futures bloomberg.com dropped as oil prices surged above $100 a barrel, with the S&P 500 facing a potential 10% correction as war risks build up. Brent crude wsj.com hit its highest intraday level since mid-2022, while European blue-chip stocks fell into correction territory. Global bond markets bloomberg.com tumbled as the oil price shock prompted investors to price in higher inflation despite growth concerns.
Traders bloomberg.com boosted ECB and BOE rate-hike bets as energy prices soared, with European gas prices jumping and Italy's Prime Minister Giorgia Meloni planning emergency legislation to tackle energy price spikes. Investor confidence bloomberg.com in the euro-area economy slumped due to the Iran war, clouding an improving outlook.
Energy Markets and Supply Disruptions
Saudi Arabia bloomberg.com started reducing oil production as the near-blockage of the Strait of Hormuz fills storage tanks. Russia's bloomberg.com Sheskharis oil terminal at Novorossiysk resumed loadings over the weekend, bringing some relief to global markets. The G7 discussed joint releases of emergency oil reserves as the Middle East war triggered a crude price surge threatening the global economy.
Oil remains nytimes.com a potent geopolitical tool decades after the energy crisis, with the war in the Middle East showing how much the world depends on reliable oil and gas supplies. Aluminum bloomberg.com rose to a 2022 high as the Iran war stokes supply crunch, while wheat approached a two-year high as the impact of the oil price surge widens.
Corporate and Financial Developments
UBS bloomberg.com increased its bonus pool by 10% as the Credit Suisse integration nears completion, while keeping CEO Sergio Ermotti's compensation unchanged at $19 million. Agilent Technologies bloomberg.com agreed to acquire privately held Biocare Medical for $950 million in an all-cash transaction.
Nvidia ft.com and ABB launched a partnership for AI-enabled autonomous robots, while Microsoft added Anthropic AI models to its Copilot workplace tools as it diversifies away from OpenAI. Nscale ft.com, an AI startup backed by Nvidia, raised $2 billion in the largest deal of its kind, with Sheryl Sandberg and Nick Clegg joining its board.
Regional Market Impacts
South African bonds bloomberg.com extended their worst selloff since the Covid pandemic as concern mounted that soaring oil prices and a weaker rand will fuel inflation. Indonesian stocks and rupiah bloomberg.com slid toward new bearish milestones as rising Middle East conflict dragged on regional assets.
Philippine companies bloomberg.com braced for higher costs as oil's spike above $100 a barrel drags the peso to a record low. Australian authorities bloomberg.com face pressure to protect the Iranian women's soccer team as the squad faces criticism at home.
Defense and Technology
European defense IPOs bloomberg.com continued with submarine components supplier Gabler Group AG's shares rising as much as 13.6% on their first day of trading in Germany. KKR ft.com eyes a multibillion-dollar sale of data center cooling company Cool IT Systems as the AI boom boosts valuations.
Powerus wsj.com, a new drone company targeting Pentagon sales, has backing from Trump's sons and plans to acquire Ukrainian drone technology. Nasdaq wsj.com partnered with Kraken in a plan for 24/7 tokenized stock trading.
Economic Policy and Central Banks
The Swiss National Bank bloomberg.com is very likely intervening in currency markets to curb the franc's strength, according to Bank J Safra Sarasin. Pakistan's bloomberg.com central bank held its key policy rate at 10.5% citing economic uncertainty after oil prices surged.
The Federal Reserve nytimes.com is widely expected to hold interest rates steady when officials next meet on March 17-18, facing a dilemma as weak jobs data underscores inflation risks from the war. Cleveland Fed President Beth Hammack bloomberg.com expects interest rates to be on hold for quite some time.
Infrastructure and Utilities
EQT ft.com took a 42% stake in Yorkshire Water, injecting funds into the utility in a sign of enduring investor confidence in the industry. Volkswagen bloomberg.com broadened its battery ambitions beyond electric vehicles into large-scale energy storage and trading as global EV demand falls short of expectations.
Bahrain's bloomberg.com Bapco Energies declared force majeure on operations impacted by the ongoing Middle East war. Dangote Refinery bloomberg.com said it will prioritize supplying fuel in Nigeria as long as it can access local crude.