Public Markets 8 Hours

Last updated: June 8, 2026, 5:35 AM ET

Energy & Geopolitical Risk

Oil prices surged 3.2% in early European trade after Israel and Iran exchanged missile strikes in a serious escalation of regional hostilities, with Brent crude climbing to $82.50/barrel. The escalating tensions threatened fragile peace talks and raised concerns about oil shipments through the Strait of Hormuz, while OPEC+ announced a modest output increase of 188,000 barrels per day. In commodities, gold fell 1.1% to $2,285/oz as the escalation reinforced expectations of higher interest rates, while copper rebounded 0.8% from Friday's slump on Chinese buying and flows to the US.

Asian Markets & Currency

India's authorities unveiled measures that boosted foreign inflows into its bonds to a one-year high of $1.2 billion, helping the rupee stabilize after the Reserve Bank deployed a record $110 billion in forex intervention. The RBI's actions lifted sentiment among investors with Goldman Sachs suggesting the rupee's slide may be nearing a floor, while DBS estimates $30-40 billion could flow from the RBI's swap facilities. In Indonesia, authorities urged police investigations into hundreds of palm oil companies that failed to pay farmers more as prices recovered, while the rupiah's decline pushed foreign reserves to fall for a fifth straight month to a five-year low.

European Markets

Eurozone government bond yields rose with German 10-year Bund yields hitting a two-week high of 2.45% as attention shifted to Thursday's ECB meeting. German factory orders fell 2.8% in April, more than expected, adding to concerns that Europe's largest economy could contract in the second quarter due to the Iran war and rising energy costs. European drivers cut back on fuel as energy prices surged, with the Eurozone recording its largest year-on-year decline in fuel sales since October 2023. Meanwhile, Italy's banking sector saw intensified consolidation as Intesa made a $35 billion bid for Monte dei Paschi to rival BPM's merger plan.

US Markets & Tech

U.S. tech stocks faced pressure from a selloff in AI-related names and a jump in oil prices, with the Nasdaq slipped 0.9% in premarket trading after Friday's selloff. The dollar remained flat against a basket of currencies as ING said it should remain supported ahead of the Federal Reserve's June 17 policy decision, while Treasuries dropped sharply as investors ramped up bets on rate hikes amid Middle East tensions. In corporate developments, Roche entered a $2.3 billion deal with Nurix Therapeutics for a blood-cancer drug, paying $700 million upfront, while SpaceX's upcoming IPO threatens to intensify market strains.

Global Fixed Income

Japanese government bonds extended their rally tracking overnight gains in U.S. Treasurys as traders priced in a September Fed rate cut, with the 10-year JGB yield falling to 0.975%. The ECB risks repeating a 2011 mistake economists warn, as its resolve to uphold its inflation-quashing reputation could lead to a damaging error when it meets this week. In Asia, Japanese pension fund proxies bought record amounts of overseas bonds last month, adding to signs of robust demand for foreign debt even as local yields climbed. Meanwhile, private equity software acquisitions have collapsed to the lowest level since the pandemic after the AI rout, with the value of deals in the first five months tumbling to $50 billion.