Public Markets 8-Hour Briefing
×Asian Markets Rebound
Asian Equities rebounded as risk appetite improved, with South Korean stocks surging by most since 2008 following their biggest one-day slump on record. Japanese Stocks recovered from a market rout triggered by the US-Israeli attack on Iran, as strong US economic data boosted sentiment. K Bank shares jumped in their trading debut as South Korean stocks rebounded from the previous day's crash.
Gold and Safe-Haven Assets
Gold prices rose on Middle East conflict and softer US dollar, with investors seeking safer assets amid geopolitical tensions. A billionaire investor with 16,000 kilos of gold sees a long-term bull case for the precious metal. Gold edged higher amid the ongoing U.S.-Iran conflict, with the dollar declining as the war in the Middle East entered its sixth day.
Iran Conflict Market Impact
US stock futures rose after Wall Street rebounded past Iran fears, with Broadcom jumping. The US Senate rejected a measure to halt the Iran war, as former NATO Ambassador Ivo Daalder believes that "everything is possible" due to the lack of direction in the conflict. The Australian dollar faces more downside risk in the near term due to the Iran conflict.
Chinese Economic Policy
China set its lowest growth target since 1991, in a tacit acknowledgment that its economic model is showing strains. The country will issue sovereign bonds worth $44 billion to recapitalize some of its largest banks. China's debt issuance plan is aligning with market expectations, easing concerns among bond traders who are supported by ample liquidity.
Credit Market Analysis
Goldman Sachs CEO David Solomon said he is keeping an eye on the private credit market, noting that "we're watching very closely to see if there's been a little bit too much aggression, frothiness" in credit markets. Goldman Sachs Asset Management said non-payment in private credit remains low, with few borrowers struggling to meet loan payments.