Global Markets:
- Asian Stock Markets : Nikkei down 1.14%, Shanghai Composite down 0.3% Hang Seng down 0.52% ASX up 0.63%
- Commodities : Gold at $4,584.51 (0.20%) Silver at $72.145 (2.50%), Brent Oil at $107.71 (0.26%), WTI Oil at $103.57 (0.92%)
- Rates : US 10-year yield at 4.324, UK 10-year yield at 4.9340, Germany 10-year yield at 3.039
News & Data:
- (GBP) M4 Money Supply m/m 0.6% to 0.1% expected
Markets Update:
Asia-Pacific markets swung sharply on Tuesday as oil prices reversed earlier gains after reports suggested President Donald Trump was seeking to avoid a prolonged Middle East conflict. Investors reacted quickly to signals that Washington may scale back military objectives, easing immediate supply fears.
The Wall Street Journal reported that Trump told aides he was prepared to end U.S. hostilities against Iran even if the Strait of Hormuz remained largely closed. Oil futures responded by retreating, with West Texas Intermediate falling 0.72% to $102.14 per barrel and Brent crude slipping 1% to $111.55. Shipping through the vital Hormuz corridor, once responsible for about one-fifth of global seaborne oil flows, has slowed sharply since strikes began in late February.
Analysts said attempts to reopen the strategic waterway could extend the conflict beyond the expected six-week timeline. Strategist Ben Emons noted that easing tensions could help contain fuel costs and inflation pressures, while the evolving conflict increasingly favors de-escalation from the U.S. perspective.
Regional markets reflected the uncertainty. South Korea’s Kospi fell 2.2%, the Kosdaq dropped 1.9%, and the won weakened near multi-year lows. Japan’s Nikkei slipped slightly, while Australia’s benchmark rose 0.9%. Hong Kong’s Hang Seng edged lower, and mainland China’s CSI 300 remained largely steady.
Overnight, U.S. equities were mixed, though futures edged higher as investors watched policy signals closely
Upcoming Events:
- 12:30 PM GMT – CAD GDP m/m
