Public Markets 8-Hour Briefing
×Equity Markets
Asian stocks extended declines for a second day as Middle East tensions remained high, with South Korean stocks dropping the most in four months. US stock futures fell further as Iran fears grew with no de-escalation in sight. Defense stocks surged as military attacks escalated across the Middle East, while energy shares gained alongside rising oil futures. Goldman Sachs traders warned of a "painful path" for US stocks before a potential rebound, though some analysts like Ed Yardeni suggested the Iran war is practically over.
Fixed Income
Asian government bonds sold off Tuesday amid fears that the Middle East conflict will drive inflation and faster interest-rate increases. Japan's 10-year bond auction drew stronger demand than its 12-month average, calming some investor nerves. However, global bonds remain on a knife-edge as the Iran war revives inflation concerns, with Treasuries showing significant selling pressure.
Commodities & Energy
Oil prices rose in Asian trading as the ongoing Middle East conflict kept supply disruption risks elevated. Coal prices jumped the most in three years as an unprecedented shutdown of Qatar's LNG plant increased fuel-switching needs. Gold could reach a record high above $5,600/oz if signs of de-escalation don't emerge soon. US LNG producers are rushing to seize on surging gas prices triggered by the Iran conflict.
Market Opportunities
Oil producers pounced on the price surge to lock in future revenue, while Philippine funds see buying opportunities in the selloff. Magellan Financial Group shares surged the most in about 20 years after agreeing to buy Barrenjoey Capital Partners in a deal valued at A$1.6 billion. PayPay and SoftBank seek $1.1 billion in the digital payments firm's US IPO, potentially the biggest-ever listing for a Japanese company in the US.