Public Markets 3d Briefing
×Market Turmoil and Oil Shock
US stocks bloomberg.com plunged as oil prices surged past $100 a barrel, with futures pointing to a third consecutive day of losses. The S&P 500 bloomberg.com could fall as much as 10% from its peak as war risks build up, according to JPMorgan. Crude oil wsj.com prices spiked to their highest levels since 2022, forcing major producers to shut down output and stoking inflation fears. Bond traders bloomberg.com faced unprecedented volatility as markets priced in a higher-for-longer rate environment.
Energy Crisis Deepens
Petrobras bloomberg.com is holding off on retail fuel price increases in Brazil despite the war-driven surge in global oil markets. Saudi Arabia bloomberg.com has started reducing oil production as the near-blockage of the Strait of Hormuz starts filling storage tanks. Qatar Energy bloomberg.com is pushing back the start of a major liquefied natural gas expansion project to at least 2027 after a drone attack forced the unprecedented closure of its Ras Laffan plant. Shell wsj.com agreed to sell Jiffy Lube and Premium Velocity to Monomoy for $1.3 billion.
G7 Response and Strategic Reserves
G7 countries nytimes.com held off on releasing emergency oil supplies, though finance ministers said they would consider releasing oil from reserves. France bloomberg.com said the Group of Seven nations is "not there yet" in terms of organizing a global release of emergency oil inventories. The EU bloomberg.com said euro-area finance chiefs will talk about a possible joint release of oil reserves after crude smashed through $100 a barrel. The US and Western allies wsj.com are turning to reserves to counteract the Gulf oil crisis.
Corporate and Investment Moves
Strategy Inc. bloomberg.com accelerated its Bitcoin buying with a nearly $1.3 billion purchase, leaning again on its common stock despite earlier pledges to pivot to preferred shares. JPMorgan Chase bloomberg.com turned bullish on US investment-grade bonds and now expects spreads on the securities to tighten by 12 basis points. Citadel Securities bloomberg.com said investors are wrong to bet the European Central Bank will raise interest rates this year while the Federal Reserve cuts.
Emerging Market Impact
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. Mexican inflation bloomberg.com accelerated more than expected in February to breach the top of policymakers' target range. Pakistan's central bank bloomberg.com held its key policy rate citing economic uncertainty after oil prices surged.
IPO and Market Activity
A handful of the worst performing companies bloomberg.com in the IPO class of 2025 are staring down the risk of a "negative feedback loop" as selling restrictions for long-term investors and management teams are lifted. BRK Ambiental bloomberg.com is considering delaying its debut as market conditions grow more challenging. Victory Giant Technology bloomberg.com is preparing for a Hong Kong listing that may raise more than $2 billion.
Regional Market Effects
Investor confidence in the euro-area economy bloomberg.com slumped due to the Iran war, clouding what had been an improving outlook. A gauge of fear in Japanese stock markets bloomberg.com has surged to the highest level since the Covid crisis in 2020 as a sharp spike in oil prices dampens optimism about the country's economic outlook. Mainland Chinese investors bloomberg.com purchased a record HK$37.2 billion worth of Hong Kong shares through a key trading link on Monday.
Commodity and Supply Chain Disruptions
Chicago soybean oil prices futures bloomberg.com surged more than 4% at the open, as a spike in energy prices driven by the conflict in the Middle East lifts demand for crops used in biofuel production. Dangote Fertiliser bloomberg.com has seen a substantial increase in demand for its products as the US-Israel war on Iran disrupts supplies. Four Chinese-run nickel plants in Indonesia bloomberg.com have shut down temporarily after a deadly landslide.
Financial Sector Developments
Bank of America bloomberg.com launched a $2.75 billion leveraged loan to help fund Nexstar Media Group's pending acquisition of rival TV-station owner Tegna. Swedish private equity group EQT ft.com is injecting funds into Yorkshire Water. Canadian insurer iA Financial Corp bloomberg.com is hunting for a multibillion-dollar acquisition after the firm reached a record valuation.
Market Structure and Innovation
Nasdaq wsj.com sought approval in September to let investors trade tokenized versions of its listed stocks and other exchange-traded products. Kalshi Inc. bloomberg.com is expanding outside the US for the first time, partnering with Brazil's XP Inc. to list event contracts. Prediction market platform Kalshi is partnering with Brazil's XP Inc. for its first international push.