Public Markets 8-Hour Briefing
×Market Performance
Europe Stocks are heading for their steepest weekly decline since April as the war in Iran shows no sign of resolution. Meanwhile, FTSE 100 has rebounded but is still set for its worst week since tariff chaos. Global investors are pulling money from Asian stocks at the fastest pace in nearly four years as the escalating conflict triggers market reassessments.
Geopolitical Impact
The dollar tracks gains as the Iran war escalates with former US State Department adviser Negah Angha describing the situation as reaching a "critical moment". Iran has intensified strikes on GCC nations while Israel hit targets in Tehran and Beirut, with President Donald Trump indicating continued US monitoring. Investors are looking back to Russia's invasion of Ukraine for guidance as uncertainty about the Iran war's duration forces market reassessments.
Energy & Commodities
US gasoline pump prices have advanced to the highest level since September 2024 as Middle East conflict disrupts energy supplies. Aluminum is headed for its biggest weekly gain since 2024 as the deepening conflict snarls shipments from the region. The IMF warns that a 10% increase in energy prices persisting for a year would push global inflation up by 40 basis points and slow economic growth.
Corporate News
Lufthansa shares jumped 3% after 2025 earnings beat expectations despite core airline weakness. SFS Group shares rose 4% as the 2025 profit drop was offset by a strong 2026 margin guide. IMI Plc shares increased 3% following FY25 earnings beat and a £500 million buyback announcement.
Central Banking & Policy
Czech wage growth unexpectedly accelerated in the fourth quarter, reducing chances of interest rate cuts this year. Despite the Middle East war, the ECB remains in a "good place" according to a Dutch central banker. Poland will likely avoid interest-rate cuts for as long as the armed conflict in Iran lasts, policymaker Henryk Wnorowski stated.