Stocks sold off and crude oil climbed as tensions in the Middle East intensified, with Iran-backed Houthi forces entering the conflict and an expanded US military presence raising concerns about a prolonged confrontation. Bonds advanced. Equities in Japan and South Korea slumped more than 3%, while the broader MSCI Asia Pacific Index dropped 2.4%, as investors cut exposure on concern that higher crude oil prices will weigh on economic growth. US equity-index futures retreated about 0.5%, while contracts for Europe tumbled 1.4%. Brent crude advanced 2.7% to trade above $115 a barrel, bringing year-to-date gains to about 90% as the conflict broadened in its fifth week. Aluminum climbed as much as 6% after Iran attacked two production sites in the Middle East. The moves came as additional US troops arrived in the Middle East, fanning fears of a risky ground attack on Iran. President Donald Trump is weighing a military operation to extract uranium from Iran, the Wall Street Journal reported. Trump hasn’t made a decision on whether to give the order, it said. After weeks of resilience amid extreme volatility driven by turmoil in crude oil markets as the Strait of Hormuz remained closed, risk assets have begun to show signs of capitulation in recent sessions. Traders are also gauging how prolonged elevated energy costs may affect global economic growth and whether they will force policymakers to keep interest rates higher for longer. Meanwhile, Trump said the US had good negotiations with Iran and the Islamic Republic gave permission for 20 oil vessels to pass through the Strait of Hormuz. Trump said he does see a deal with Iran and that could be soon. Even so, Israel struck Tehran anew Sunday and Saudi Arabia intercepted almost a dozen drones, a day after Yemen-based Houthi militants entered the war. The conflicting comments are adding to the strain in the equity markets. The 3.4% drop in the S&P 500 over Thursday and Friday was its worst two-day decline in a year, leaving the benchmark more than 8% below its January record. The Nasdaq 100’s two-day, slide sent it into a 10% correction. In other corners of the market, gold dropped 0.5% to trade around $4,470 an ounce. A Bloomberg gauge of the dollar strengthened for a fifth day, while Bitcoin traded around $66,600. The yen rose versus its Group-of-10 currency peers after Japan’s currency chief Atsushi Mimura said the nation may take bold action in the foreign-exchange market if current situation continues. Treasuries rose on Monday, with the yield on the benchmark 10-year falling three basis points to 4.40%. Some Wall Street bond-fund managers say markets are underestimating the risk that the US war in Iran will cause a sharp slowdown in an already sputtering economy. At companies including Pacific Investment Management Co., JPMorgan Chase & Co. and Columbia Threadneedle Investments money managers are preparing instead for an economic hit that will eventually trigger a bond-market rebound and cause yields to come sliding back down. Economists have started to dial back their growth forecasts and nudge up the odds of a recession as higher energy prices, rising borrowing costs and the stock-market slump start to squeeze businesses and consumers. Goldman Sachs Group Inc. said the probability of a downturn over the next 12 months has risen to about 30%, while Pimco sees a more than one-third chance. Oil may hit a record $200 a barrel if the Iran war drags on until June, with the Strait of Hormuz staying shut, Macquarie Group Ltd. warned. A conflict that stretches through the second quarter would result in historically high real prices, analysts including Vikas Dwivedi said in a note, outlining a scenario with odds of 40%. An alternative outlook, with a probability of 60%, suggested the war may finish at the end of this month, they said.
Nikkei -3.25% Hang Seng -1.24% CSI -0.56% Shanghai +0.23% Shenzen +0.02%
Eur$ 1.1511 CNH 6.9144 CNY 6.9097 JPY 159.73 GBP 1.3274 CHF 0.7988 RUB 81.7076 TRY 44.4672 WTI$ 101.05 +1.43% Gold 4,507 +0.30% BTC 67,600 +1.57% ETH 2,054 +2.60%
S&P +0.05% Nasdaq +0.04% EuroStoxx -0.77% FTSE -0.32% Dax -0.66% SMI -0.44%
Macro :
- Distressed-debt funds target private credit downturn as ‘greatest opportunity’ since 2008 - FT
- Foiled BofA Bombing in Paris Linked to Mideast War, France Says
- US Sees First Combat Loss of Valuable E-3 Jet in Missile Strike
- JPMorgan Bumps Up Rating on High-Grade Tech Bonds to Neutral
- JPMorgan Bumps Up Rating on High-Grade Tech Bonds to Neutral
- VIX Closes at Highest Level Since April’s Tariff Turmoil
- Investor Khosla Says US Tax Overhaul Needed Because of AI: FT
- China, EU Work With Other Countries on Global E-Commerce Rules
- Why the Cost of Your Coffee Has Soared—and Isn’t Going Down Soon - WSJ
- French Factory Closures Jump 30% on Asia Pressure, US Tariffs
Keep an eye on :
Keep an eye on :
- ATO FP : Atos Says US Court Ordered Syntel to Pay $236.9M to Cognizant
- ATO FP : US Court Upholds Order for Atos' Unit to Pay Damages to Cognizant's TriZetto
- BBVA SM : BBVA to Sell Romania Business to Raiffeisen for $680 Million
- BAC US : France Detains Two More Suspects After Foiled BofA Paris Bombing
- BFF IM : BFF Bank Receives Bank of Italy Regulatory Measure
- BLK US : BlackRock’s Fink Gets 23% Raise After Private Markets Push
- CEC GY : Ceconomy: Uncertain Whether Austria to Grant Merger Clearance
- CO FP : Casino: Creditors Extend Term Loan B, RCF Consents to May 28
- CPI AV : CPI Europe FY Rental Income EU562.5M
- CPI AV : CPI Europe FY Rental Income EU562.5M
- CREDIA GA : *CREDIABANK TO OFFER NEW SHARES AT €0.80 A PIECE
- CSG NA : CSG Shares Fall 19% in Two Days After First Earnings Since IPO
- FGR FP : Eiffage Prepares Its Next Move at Getlink - Agefi
- LLY US : Lilly, Insilico Ink Deal on AI Drugs Worth Up to $2.75 Billion
- ENT LN : Washington State Sues Kalshi for ‘Illegal Gambling’
- EL FP : Meta to Launch New AI Glasses Aimed at Prescription Wearers
- FMCC US : Ackman Says Fannie Mae, Freddie Mac Are ‘Stupidly Cheap’
- GALD SW : Late-Breaking Nemolizumab Data Demonstrate Clinically Meaningful Benefits for Children Aged 2 to 11 With Moderate-to-Severe Atopic Dermatitis
- GET FP : Eiffage Prepares Its Next Move at Getlink - Agefi
- GOOGL US : Google Nears Deal to Help Finance Anthropic Data Center: FT
- GOOGL US : Google Nears Deal to Help Finance Anthropic Data Center: FT
- HAL NA : HAL 4Q Net Asset Value per Share EU181.84
- RMS FP : Hermès Said Building Design Team Ahead of Haute Couture Launch - WWD
- 3696 HK : Lilly, Insilico Ink Deal on AI Drugs Worth Up to $2.75 Billion
- Ineos : Ineos Warns of Flagship Project Delays Due to Hormuz Crisis: FT
- INW IM : Ardian Warns Telecom Italia About Early Tower Contract Exit
- JDEP NA : Keurig DR Pepper Declares Offer for JDE Peet's Unconditional
- Kailera Ther. IPO : Kailera Therapeutics Files for US IPO to Fund Obesity Drugs
- LDO IM : Meloni Mulls Changes at Italian State-Owned Firms After Setback
- MAERSKB DC : aersk Flags 48-hour Operations Halt Amid Port Security Incident in Oman
- META US : Meta to Launch New AI Glasses Aimed at Prescription Wearers
- MB IM : Trevi Group in Pact With Mediobanca Over €100M Rights Offering
- BMPS IM : Monte Paschi Urges Shareholders to Back Board Slate at AGM
- NHY NO : Watch Firms Like Norsk Hydro After Attacks on Aluminum Plants
- NOC US : Northrop Grumman Wins $884.9 Million U.S. Army Contract
- Open AI : The Sudden Fall of OpenAI’s Most Hyped Product Since ChatGPT - WSJ
- ORCL US : Oracle CDS traded at 198.175 friday highest level, means 15% probability of default
- PTON US : Peloton Surges as Eric Jackson Says He’s Long the Stock
- PRX NA : Just Eat Owner Targets 20% Annual Order Growth Before 2030: FT
- RBI AV : Raiffeisen Bank International to Buy Garanti BBVA Group Romania
- RIO LN : Rio Tinto Says Iron Ore Port Ops Resumed After Cyclone Narelle
- Space X IPO : SpaceX’s IPO Challenge - The Information
- SF SS : Stillfront Group Issues SEK1 Billion Bonds, Plans Redemption of SEK569 Million Bonds
- SMHN GY : SUSS MicroTec Sees 2026 Sales EU425M to EU485M
- TECN SW : Tecan Names Camila Japur as CFO Effective June 1
- TIT IM : Telecom Italia Scraps Plan to Renew Inwit Tower Contract in 2030, Telecom Italia to Terminate Contract With Inwit
- TIT IM : Ardian Warns Telecom Italia About Early Tower Contract Exit
- TFIN IM : Trevi Group in Pact With Mediobanca Over €100M Rights Offering
- UBSG SW : UBS Banker L’Esperance to Leave Investment End-March: Reuters
- VWS DC : Vestas to Cut 440 Jobs at Lindo Factory in Denmark: MarketWire
- VH2 GY : Friedrich Vorwerk Group Investor Declares 3.04% Voting Rights