Public Markets 8-Hour Briefing
×Energy Markets
Coal prices jumped the most in three years as Qatar's LNG plant shutdown raised fuel-switching needs in the electricity sector. Oil producers pounced on the price surge to lock in future revenue as crude markets soared by the most since June. US LNG producers rushed to bring on extra capacity as prices surged in Europe and Asia following the Iran conflict.
Market Volatility
Asian stocks fell as the Middle East conflict fueled inflation concerns, sending bonds lower and prompting traders to scale back interest-rate cut bets. The S&P 500 rebounded from an early 1.2% drop to finish up less than 0.1% as energy and tech stocks rallied. Goldman Sachs warned US equities may need to pull back further before mounting a durable advance, citing fragile sentiment.
Defense & Aerospace
Defense stocks surged Monday as military attacks escalated across the Middle East, underscoring air and naval assets remain central to military strategy. The State Street Energy Select Sector SPDR ETF saw investors positioning before the full onset of hostilities. Breakwave Tanker Shipping ETF became the world's best-performing ETF as rising oil-shipping costs amid the Iran conflict drove the rally.
International Markets
Australia's biggest pension funds rushed to hedge against the Aussie dollar's sustained rally that threatens to erode portfolio returns. The Philippines' top pension fund saw buying opportunities in the selloff fueled by the Middle East conflict as it weighs expanding its equities portfolio. Canada's economic outlook would benefit from a sustained rise in oil prices, though inflation would also increase.
Technology & Private Markets
Thoma Bravo is in advanced talks to acquire WWEX Group in a plan to create a $12 billion shipping technology business. Magellan Financial Group shares surged the most in 20 years after agreeing to buy Barrenjoey Capital Partners in a deal valued at about A$1.6 billion. Former Macquarie quant Nick Bird is having a second go at running a Europe-focused hedge fund vehicle.
Financial Services
Blackstone's flagship private credit fund faced redemptions as investors pulled net $1.7 billion in the first quarter amid industry strains. Ares Management closed an $850 million continuation fund for Convergint, allowing an asset bought in 2018 to be rolled into a new vehicle. Capula Investment Management faced a lawsuit alleging wrongful firing of its former US compliance head for raising concerns about improper expenses.
Emerging Markets
Emerging market stocks and currencies came under pressure as the US dollar jumped following US-Israel strikes on Iran. James Craige of Stone Harbor Investment Partners said investing in Iran remains "ways off" as he discussed positioning in countries surrounding the conflict. Top Philippine funds saw the selloff as a buying opportunity while weighing expanding their equities portfolio.
Real Estate & Infrastructure
Canadian investment firm Avenue Living halted redemptions at two multibillion-dollar real estate funds while boards consider taking them public. Equipment rental company Sunbelt Rentals made its US stock-market debut amid a rush by investors into asset-heavy, capital-intensive businesses. UAE aluminum maker Emirates Global Aluminum considered using offshore stocks to counter ship-loading delays from the Iran war.
Currency & Fixed Income
The Treasury market saw inflation re-emerge as the crucial worry as investors saw the risk of a protracted Middle East conflict keeping crude prices elevated. Municipal bonds offered investors shelter as the Iran war escalated, with most safe-haven assets rising Monday. The dollar strengthened as traders scaled back interest-rate cut bets amid inflation concerns from the oil price surge.