Public Markets 3h Briefing

Energy & Commodities

Oil futures dropped 1.3% nytimes.com in early Asian trade as OPEC+ signaled potential output increases, while gold held near $2,340 wsj.com as a weakening dollar offset risk-on sentiment. A surge in aluminum prices ft.com pushed China Hongqiao's Zhang Bo past the $48 billion mark, cementing his position among Asia's wealthiest industrialists. Simultaneously, oil prices fell 14% bloomberg.com following U.S. President Trump's comments suggesting a possible end to the Iran war, easing Middle East supply concerns that had previously driven crude higher. This volatility was mirrored in shipping, where a dozen clusters of ships near Hormuz bloomberg.com signaled potential electronic jamming, a tactic linked to the ongoing U.S.-Iran tensions. Jet fuel costs spiked 8% on Middle East supply fears, weakening U.S. airline bonds ft.com, while Air Asia X Bhd faced further pressure after its failed fuel hedge strategy.

Fixed Income

Japanese government bonds extended gains ft.com tracking overnight Treasury rallies as traders increasingly price in a September Fed rate cut. U.S. airline bonds weakened ft.com after jet fuel costs spiked 8% on Middle East supply fears, and Chicago's planned muni bond sale ft.com is testing investor appetite amid geopolitical uncertainty. U.S. solar installations fell 14% nytimes.com in 2025 as Trump's attacks on clean energy policies dampened demand, despite solar adding more capacity to U.S. grids than any other technology. Meanwhile, China's yield curve reached its steepest level in four years bloomberg.com as inflation concerns, fueled by the Iran war, piled pressure on longer-term debt. Tencent and Zhipu shares jumped on AI agent launches bloomberg.com leveraging Open Claw, reflecting China's enthusiasm for open-source AI.