Public Markets 8-Hour Briefing

ENERGY & COMMODITIES

Oil futures dropped 1.3% in early Asian trade as OPEC+ signaled potential output increases, while gold held near $2,340 as a weakening dollar offset risk-on sentiment. A surge in aluminum prices pushed China Hongqiao's Zhang Bo past the $48 billion mark, cementing his position among Asia's wealthiest industrialists. Meanwhile, oil prices rose after a Wall Street Journal report indicating the IEA proposed a record release of reserves to bring down prices, though mixed messages on Hormuz kept volatility elevated.

FIXED INCOME

Japanese government bonds extended gains tracking overnight Treasury rallies as traders increasingly price in a September Fed rate cut. U.S. airline bonds weakened after jet fuel costs spiked 8% on Middle East supply fears, and Chicago's planned muni bond sale is testing investor appetite amid geopolitical uncertainty. JPMorgan marked down loan portfolios of private credit groups, with devaluations of collateral expected to limit credit to firms that have become top lenders to higher-risk companies.

EQUITIES

Rheinmetall's results missed forecasts despite soaring sales, with German arms group sales jumping 29% to $11.54 billion on Ukraine war demand, while L&G to start a £1.2 billion share buyback as UK insurer profits climbed. Saudi Arabian miner Saleh Abdulaziz Al Rashed & Sons Co. surged in its Riyadh debut despite ongoing Iranian strikes, defying odds to post a $67 million IPO. Henkel expected growth despite geopolitical challenges, with adjusted earnings per preferred share rising 4.7% at constant exchange rates.

MERGERS & ACQUISITIONS

The Italian banks Monte Paschi and Mediobanca reached a merger deal expected to complete by year-end, leading to Mediobanca's delisting. Oasis Management Co. took a stake in scandal-embattled Nidec Corp., which delayed results following an accounting scandal that forced the Japanese electric-motor maker to see its truncated status. Porsche explored new premium models to drive its turnaround after a 93% profit plunge last year, while Porsche expects further earnings hits from tariffs and battery costs.

MARKET IMPACTS

The Iran war lifted K-defence company LIG Nex1's Cheongung-II, with real-war success fostering demand for Korean security tech. China's energy security push paid off as war roiled Asia refiners, with