Public Markets 3d Briefing
×Energy Crisis and Market Turmoil
Crude oil prices ft.com surged to their highest levels since 2022, with major producers forced to shut down output amid the Middle East conflict. The S&P 500 fell sharply bloomberg.com as war risks built up, with JPMorgan seeing a potential 10% correction from peak levels. South African bonds bloomberg.com plunged as oil surges fueled inflation fears, extending their worst selloff since the Covid pandemic.
Central Bank Policy Shifts
Investors reversed bets ft.com on central bank rate cuts as the oil crisis deepened, with Iran war expected to derail easing plans. European Central Bank bloomberg.com traders signaled a dramatic shift from just a month ago when inflation was declared to be in a "good place." JPMorgan bloomberg.com turned bullish on US investment-grade bonds, expecting spreads to tighten by 12 basis points. Citadel Securities bloomberg.com argued that investors are wrong to bet on ECB rate hikes while the Fed cuts, citing the oil-price surge.
Oil Market Disruptions
The Group of Seven discussed joint releases ft.com of emergency oil reserves as Middle East war triggered crude price surges threatening the global economy. Saudi Arabia bloomberg.com started reducing oil production as the Strait of Hormuz closure filled storage tanks. Russia's Black Sea port bloomberg.com resumed oil loading over the weekend, bringing some relief to global markets amid Middle East conflict.
Corporate and Financial Moves
Netflix bloomberg.com staged a dramatic stock reversal after walking away from its Warner Bros. Discovery acquisition. First Brands creditors ft.com reckon with dwindling chances of repayment as upcoming asset sales may yield as little as $200 million to pay off a $12 billion debt pile. Chicago bloomberg.com tested the municipal bond market with an $800 million bond sale as war in the Middle East upended global markets.
International Market Developments
Mainland Chinese investors bloomberg.com purchased a record HK$37.2 billion worth of Hong Kong shares through key trading links, reversing their unprecedented sale last week. Victory Giant Technology bloomberg.com is preparing for a Hong Kong listing that may raise more than $2 billion. Nasdaq wsj.com sought approval to let investors trade tokenized versions of its listed stocks and other exchange-traded products.
Regional Economic Impacts
Brazilian oil company Petrobras bloomberg.com held the line on fuel prices despite war-driven global oil market surges. Kenya's capital bloomberg.com was worst affected as floods killed at least 37 people after heavy rains. Mexico's inflation bloomberg.com jumped more than expected in February, breaching the top of policymakers' target range.
Technology and Innovation
Nvidia ft.com and ABB launched a partnership for AI-enabled autonomous robots, with industrial robots that can be trained in virtual conditions being trialed by Foxconn. Microsoft ft.com added Anthropic AI models to its Copilot workplace tools as it diversifies away from OpenAI. Kalshi bloomberg.com expanded outside the US for the first time, partnering with Brazil's XP Inc. to list event contracts.
Real Estate and Infrastructure
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. Telefónica ft.com vowed to help its UK subsidiary better compete with Openreach network through broadband deals. London ft.com is becoming a dip-in, dip-out city for the super-rich as buyers drop budgets and shift full-time bases away from the capital.
Labor Market Developments
US employers bloomberg.com unexpectedly cut jobs in February, with nonfarm payrolls falling 92,000 last month and the unemployment rate rising. Health care nytimes.com has become the lifeblood of the labor market as an aging population draws workers to medical and social care. Cleveland Fed President Beth Hammack bloomberg.com discussed two-sided risks to rates following disappointing jobs numbers.
Emerging Market Concerns
Indonesian nickel plants bloomberg.com halted output after a deadly landslide at a waste area used by one of the facilities. Bahrain's Bapco Energies bloomberg.com declared force majeure on operations impacted by the ongoing Middle East war. Dangote Refinery bloomberg.com said it would prioritize supplying fuel in Nigeria as long as it can access local crude.
Market Sentiment and Trading
Trend riders bloomberg.com maxed out on bullish US oil bets for the first time since 2021, with algorithmic traders accelerating price momentum. Balyasny Asset Management bloomberg.com saw two Europe energy traders leave in a volatile week. Chicago soybean oil prices bloomberg.com futures surged more than 4% as conflict in the Middle East lifted demand for crops used in biofuel production.
Regulatory and Legal Developments
Live Nation wsj.com reached a settlement with the DOJ in its antitrust case, sparing the concerts-and-tickling giant from the threat of its business being broken up. Anthropic wsj.com sued the US Defense Department and other agencies, alleging retaliation for a policy disagreement. G7 finance ministers ft.com pledged "necessary measures" to tackle surging crude prices with a deal expected as soon as Tuesday.