Public Markets 3d Briefing

Energy & Commodities

Oil prices slipped below $90 wsj.com in early European trade as traders assessed mixed signals, including an expected IEA decision on strategic reserve releases and reports of UAE oil partners being told to collect barrels from ports behind the Strait of Hormuz. The effective closure of Hormuz bloomberg.com continues to disrupt global flows, prompting world governments to step up efforts to calm markets. The G-7 supports using reserves bloomberg.com in principle to address volatility, while Thailand is burning through its fuel fund at a rate of $32 million daily bloomberg.com to cap diesel prices. The conflict is also choking sulphur flows ft.com, spiking prices and threatening industries from fertilizers to microchips. Meanwhile, European gas net longs hit a 15-month high bloomberg.com as funds bet on turmoil, and the EU is considering a gas price cap bloomberg.com to shield consumers. Russia’s Putin urged oil firms to use high prices to cut debt bloomberg.com, calling the spike temporary. Germany’s economy ministry said the war would cause only a minor setback if it doesn’t escalate bloomberg.com, while France is sticking to growth forecasts bloomberg.com despite energy pressures.

Equities: Regional & Sector Moves

Japan’s Nikkei 225 plunged into correction territory bloomberg.com as oil spikes and Middle East tensions clouded the outlook, marking its worst drop since April’s tariff rout. In contrast, mainland Chinese investors bought a record HK$37.2 billion bloomberg.com of Hong Kong stocks via the trading link, reversing last week’s exodus. Taiwan also saw a billion-dollar inflow bloomberg.com ending a withdrawal streak, while South Korea’s market volatility lured traders into risky leveraged ETFs bloomberg.com. European equities showed divergence: Legal & General shares sank wsj.com after missing key metrics, with its capital buffer shrinking as it cut asset values, though it announced a £1.2 billion buyback ft.com. Lindt & Sprünglishares fell 7.8% wsj.com after cutting guidance on war-hit tourism. German arms maker Rheinmetall saw its investor base rewarded with a bumper dividend ft.com as sales surge up to 45% wsj.com on rearmament demand. In the U.S., software stocks found a bottom bloomberg.com after AI-driven selling, while NIO turned its first profit wsj.com on record sales. China’s CATL shares soared 10% ft.com as the AI boom boosts data center demand for batteries.

Fixed Income & Credit Stress

Corporate credit markets are showing remarkable resilience bloomberg.com amid turmoil, according to Oaktree’s Rosenberg, who sees opportunity in high-quality debt. This contrasts with growing strain in private credit, where sloppy underwriting bloomberg.com is blamed for a coming reckoning by Pimco. JPMorgan is marking down loan portfolios ft.com of private credit groups as collateral values drop, which will restrict credit to riskier firms. The Bundesbank is abandoning its historic Frankfurt headquarters bloomberg.com for a school, ending a decade of uncertainty. Meanwhile, Amazon made its debut in the euro bond market bloomberg.com with a record eight-part sale targeting around €10 billion ($11.6 to fund AI investments. UBS’s entrepreneur clients are betting big on AI bloomberg.com over the next five years, viewing it as the top opportunity.

Corporate Actions & Strategy Shifts

Zara owner Inditex is set to pay out a record €3.2 billion dividend bloomberg.com to billionaire Amancio Ortega, even as it posted fresh sales growth despite the Middle East conflict. CVC Capital’s next flagship buyout fund could set a new record bloomberg.com, surpassing its predecessor—the largest ever raised. BlackRock is donating $100 million wsj.com to trade-worker training as part of an infrastructure-investing push. Porsche, however, faces a further earnings hit wsj.com after a 93% profit plunge, with one-off costs of $4.53 billion, while its new CEO explores premium models for a turnaround. Henkel expects growth despite geopolitical challenges wsj.com, and Henkel’s adjusted EPS rose 4.7%. Adani Energy raised $500 million bloomberg.com in a bilateral debt deal with Apollo. Malaysia’s cabinet referred a graft probe into anti-corruption chief Azam Baki bloomberg.com to the chief secretary for follow-up. South Africa plans to expand a credit-guarantee fund bloomberg.com to back billions in infrastructure projects.