Morning Note: A Round-up of Global Financial Market News
Market News
Oil erased gains after the Wall Street Journal reported that President Donald Trump told aides he’s willing to end the US military campaign against Iran even if the Strait of Hormuz remains largely closed. Brent Crude currently trades at $107 a barrel, having hit $117 yesterday.
Meanwhile Iran struck a fully laden Kuwaiti oil tanker in the anchorage area of Dubai’s port, damaging the hull and starting a fire on board that was later extinguished. Iran’s parliament approved a bill to impose fees on the Strait of Hormuz, Fars reported. The legislation would ban US and Israeli vessels and also prohibit countries participating in sanctions against Iran.
US Secretary of State Marco Rubio hinted the US might reconsider its NATO relationship after the Iran War. He called the alliance’s alleged lack of support during the Middle East conflict “very disappointing.”
Gold rose above $4,600 an ounce before drifting back to $4,560. The yield on the US 10-year Treasury is 4.33%, sliding for a second consecutive session amid dovish signals from Federal Reserve Chair Jerome Powell.
US equities drifted lower last night – S&P 500 (-0.4%); Nasdaq (-0.7%) – but the futures market is currently expecting a 0.5% rise at the open this afternoon.
In Asia, equities fell this morning: Nikkei 225 (-1.6%); Hang Seng (-0.3%); Shanghai Composite (-0.8%). China’s factory activity expanded for the first time this year in March, with the official manufacturing PMI rising to 50.4 from 49 in February.
The FTSE 100 is currently trading 0.2% higher at 10,147, while Sterling trades at $1.3195 and €1.1510. Unilever has disclosed it is in advanced talks to combine its food unit with McCormick in a $60bn deal that may be announced today to coincide with the US company’s quarterly results. Further details have been revealed including an upfront cash component of $15.7bn and the majority of the consideration to be paid in McCormick equity. Unilever is expected to hold 65% of the combined company.
The final estimate of UK Q4 2025 GDP showed the economy expanded by 0.1% quarter on quarter, unrevised from the first estimate. The data show broad-based weakness at home and will add to concerns that the renewed inflation shock coming from the Iran war will hit an already soft economy.
UK house prices rose by 0.9% month on month in March, according to Nationwide, accelerating from the 0.3% increase in February and above Bloomberg consensus expectations of no change. On a year-on-year basis, prices rose by 2.2%.
Source: Bloomberg
