Morning Note: A Round-up of Global Financial Market News.
Market News
Brent Crude has risen above $111 a barrel, as President Trump’s deadline for Iran to strike a deal or face intensified attacks approaches. Trump warned he would target Iranian power plants and bridges if his conditions are not met by Tuesday 8pm Eastern Time, including the reopening of the Strait of Hormuz. This overshadowed signs that the US and Iran may be moving closer to a ceasefire agreement through mediators. Meanwhile, Tehran cautioned that it would retaliate against potential US strikes on civilian infrastructure by escalating its own attacks on energy assets in the Gulf, potentially worsening the global energy shortage.
A JPMorgan Chase gauge of one-month volatility in Group-of-10 currencies rose 17 basis points to 7.98%, though it remained within a recent range, signalling mild rather than severe concerns about the coming deadline.
The dollar, which has emerged as the haven of choice during the Iran war, strengthened 0.1%. Gold trades at $4,640 an ounce, around 12% down since the conflict began, as surging energy prices tied to the Iran war fuel inflation fears and increase the likelihood that central banks will delay cutting interest rates or even raise them.
The Fed’s Beth Hammack told the AP a rate hike may be needed if inflation persists above target, but a cut may be warranted if the labour market deteriorates significantly. The yield on the US 10-year Treasury is 4.36%.
US equities rose last night – S&P 500 (+0.4%); Nasdaq (+0.5%). Medicare will pay private insurers 2.48% more in 2027, an improvement over the initial rates proposed in January. UnitedHealth jumped post-market. Pershing Square proposed acquiring Universal Music Group for €9.4bn in cash and equity, with total consideration estimated at €30.40 per share.
In Asia, equities eked out small gains this morning: Nikkei 225 (+0.1%); Hang Seng (closed); Shanghai Composite (+0.2%). Samsung rose after quarterly profit beat expectations.
The FTSE 100 is currently trading little changed at 10,443, while Sterling trades at $1.3240 and €1.1470.
Source: Bloomberg
