Public Markets 3 Days

Last updated: April 8, 2026, 5:30 AM ET

Middle East Conflict Eases: Markets Roar Back

Global markets experienced a sweeping relief rally following the surprise announcement of a two-week ceasefire between the US and Iran, which sparks relief rally in global stock markets and caused crude oil to tumble sharply. The front-month Brent contract for June delivery slid 15% in early European trading, with WTI futures for May falling 18%, prompting the largest drop for US crude since 2020 posts its biggest drop since 2020. This dramatic reversal in energy prices immediately calmed inflation fears, causing US stock index futures to rally after President Donald Trump’s announcement and leading European shares to stage their biggest advance since 2022 were set for their biggest advance since 2022.

The easing of geopolitical tension immediately shifted risk sentiment across asset classes, with emerging-market assets gaining after a ceasefire deal and the Australian dollar, a barometer of global risk appetite, jumping on news that a two-week cease-fire has been declared. Fixed income markets also reacted swiftly; Treasuries rose as the ceasefire spurred oil drop and fueled expectations that the Federal Reserve might resume interest rate cuts, while Japanese government bonds extended gains on easing inflation concerns. Conversely, the safe-haven US dollar fell against all its major peers, hitting a one-month low as demand for the currency waned sapping demand for the currency as a haven.

Energy Sector Readjustment & Lingering Supply Issues

While the ceasefire brought immediate relief, analysts cautioned that the energy supply chain requires substantial time to normalize, with experts suggesting bringing the Gulf’s energy system back to something akin to normal will take months. Despite the temporary reopening of the Strait of Hormuz, which allowed shipowners to scramble to understand the fine print for extraction of over 800 trapped vessels, some market players benefited from previous chaos; Shell said its oil trading operation was boosted even as its Middle East assets suffered damage. Furthermore, China’s hopes for a quick rebound in liquefied natural gas demand are fading despite the ceasefire due to lingering supply risks and elevated prices, even as Beijing granted independent refiners additional crude import quotas to manage immediate domestic needs.

The energy shock’s immediate impact was felt across various industries; UK builders reported the sharpest acceleration in cost pressures in at least three decades in March, driven by fuel and raw material inflation stemming from the conflict. In Asia, the spike in fuel prices forced a rethink of energy policy in the Philippines, while Malaysian rubber glove maker WRP Asia Pacific Sdn. began winding down operations due to severe disruptions across global energy and petrochemical supply chains. On the corporate actions front, Japan’s Chiyoda Corp. is considering resuming construction work on a Qatari LNG plant, signaling cautious optimism following the truce.

Corporate & IPO Activity Amid Macro Shifts

In corporate news, Hong Kong conglomerate CK Hutchison has started arbitration against A.P. Moller-Maersk following Panama’s seizure of its port assets, escalating a legal battle over terminal control. Separately, in Asia’s primary markets, spatial-design software maker Manycore Tech Inc. is planning its Hong Kong IPO, attracting investment interest from major players including Hesai Group and Taikang Life Insurance Co.. Meanwhile, in India, Advent International LP-backed Svatantra Microfin Pvt. is with preparations for an initial public offering that could raise as much as $250 million.

The private capital world continues to see significant activity, particularly in secondaries, where investors poured a record $166 billion into funds backing ageing assets last year, a trend where elite firms are racing to attract capital have piled into the secondaries market. In private credit, Barings LLC capped redemptions after investors requested to pull out 11.3% of shares in the first quarter, demonstrating stress in that segment, which JPMorgan chief Jamie Dimon warned may see larger losses than anticipated.

Central Banks and Currency Stabilization

Central banks in emerging markets continued their defense of local currencies following the pre-truce volatility. The Reserve Bank of India held interest rates steady in its first decision since the crisis erupted, managing the dual challenge of supporting growth while grappling with a weaker rupee. In fact, the rupee later climbed, extending its biggest rally in 12 years after the RBI doubled down on curbing speculation, although the Governor assured that these curbs will not remain in place forever. Elsewhere, Taiwan’s foreign reserves saw their steepest monthly drop in nearly 15 years in March due to central bank intervention to stabilize the currency against capital outflows, mirroring a trend seen in Indonesia, where reserves fell for a third straight month.

Mining and Tech Sector Developments

Commodities markets saw mixed movements as the oil shock receded. Copper advanced after the Hormuz truce lifted risk sentiment, though Goldman Sachs warned that copper remains vulnerable if the Strait of Hormuz stayed blocked, underscoring the fragility of the commodity recovery. In mining M&A, Ghana’s Engineers and Planners Co. won the bid to take over the Damang gold mine after Gold Fields Ltd. exited the operation. In technology, AI startup Perplexity saw revenue jump 50% following its pivot toward more complex AI agent services, while in South Korea, an AI K-Pop startup Galaxy aims for IPO in Seoul and New York, featuring humanoid robots in luxury hip-hop outfits.