Public Markets 8-Hour Briefing
×Energy & Commodities
Oil prices continued climbing as the effective closure of the Strait of Hormuz showed no signs of ending, with IEA countries set to decide Wednesday whether to release strategic reserves to calm energy markets. The disruption has caused Qatar's LNG export plant to halt shipments for five days - the longest streak in data going back to 2008 - while Iran maintains control of the vital waterway, actually exporting more oil today than before the war. Thailand's government is bleeding cash at a rate of $32 million daily to keep domestic diesel prices artificially low, while Vietnam is tapping its fuel fund to steady prices amid growing concerns of global energy shortages.
Fixed Income & Central Banks
The European Central Bank may need to raise rates sooner than anticipated due to inflation risks from the Iran war, while France's finance minister rejected revising growth forecasts despite the surge in energy prices. In Japan, five-year government bond auctions drew stronger demand than the 12-month average as expectations of a possible rate hike receded. Legal & General Group planned a £1.2 billion share buyback as profits climbed, though the pound rose slightly as oil price pressures began to ease in some markets.
Asian Equity Markets
Foreign investors reversed the Taiwan stock exodus with a $1.17 billion purchase of Taiwanese stocks on Wednesday, ending the longest streak of withdrawals since November. Meanwhile, Amazon debuted in the euro bond market with a record eight-part sale targeting around €10 billion ($11.6 to fund artificial intelligence investments. Hedge funds of Asia-based managers including Dymon Asia Capital and Modular Asset Management have held onto 2026 gains despite recent market volatility, while UBS's global entrepreneur clients view AI as the biggest opportunity over the next five years.
Geopolitical Impact on Markets
China's central bank signaled increased tolerance for yuan flexibility to manage fallout from the Iran war, while the country's vast crude reserves are providing breathing space for its refiners as Middle East conflict roils global production and shipping. South Korea will speed up nuclear reactor restarts to secure energy amid the ongoing Middle East crisis, while Germany's Rheinmetall expects sales to jump by 45% as Europe continues to rearm and air-defense demand grows. The Middle East war is costing the regional tourism industry $600 million daily as thousands of travelers cancel trips after cities like Dubai are targeted by Iranian strikes.
Private Credit & Alternative Investments
Ares Management is planning its first Asia local currency private credit fund in Thailand as the country emerges as a new market for alternative investments. Pacific Investment Management Co. blames sloppy underwriting for the private credit "reckoning," while JPMorgan is marking down loan portfolios of private credit groups. The rising strain in private credit markets has prompted questions about potential mis-selling