Public Markets 8-Hour Briefing
×Geopolitical Impact on Markets
Oil prices surged for a second day as the US and Israel stepped up their war against Iran, with the conflict's impact on energy assets in the Persian Gulf deepening. Gold rose, after tumbling more than 4% in the previous session, as traders weighed a stronger dollar against demand for safer assets. Bond traders are sharply reducing expectations for interest rate cuts from the Federal Reserve, as the war with Iran drives fears of an inflationary resurgence.
Global risks have renewed appetite for US dollar funding as the spiraling Middle East conflict slams global risk appetite. In a day of wild market moves, oil has become a new haven for investors seeking shelter from geopolitical turmoil.
Market Performance
Asian stocks extended their slide into a third day as the war in Iran threatens to unleash a wave of global inflation and traders pare bets for interest-rate cuts. Korean equities extended their slide into a third session, as risk-off sentiment spurred by the Middle East conflict drove a steep selloff in the world's hottest stock market.
US stocks trimmed their losses as assurances on American action to secure shipping lanes through the Strait of Hormuz amid the Iran war pared what had been an over 9% surge in oil. Wall Street strategists warn against betting on President Trump rescuing stocks rattled by the Iran war, suggesting the market reaction has been more muted than expected.
Economic Indicators
Australia's GDP hit a 3-year high in Q4, growing more than expected as the commodity-rich economy continues to show resilience. The Australian stock market is benefiting from blockbuster February earnings results that are helping lure investors back to the market.
Fed's Kashkari discussed the outlook for interest rates and the US economy, maintaining that inflation concerns remain despite recent market volatility. The Federal Reserve continues to balance economic growth with inflationary pressures stemming from geopolitical tensions.
Corporate & Capital Markets
NYSE's Martin believes global conflicts, including strikes on Iran, are unlikely to completely stop companies from tapping the US public markets. Elon Musk's SpaceX has added Citigroup to the banks leading its initial public offering, as the rocket company moves closer to what could be a landmark listing.
JPMorgan and Wells Fargo are providing about $1 billion in debt to support the management buyout of hospital operator Select Medical Holdings. Nvidia continues its investment spree in UK autonomous driving startups, putting $103 million into Oxa as part of its broader strategy in the mobility sector.