Markets Find Relief After a Challenging Month
Markets recovered modestly on Tuesday after a Wall Street Journal report suggested U.S. plans to scale back military efforts against Iran. The report said President Trump told aides he would delay a complex operation to reopen the Strait of Hormuz. Markets Find Relief After a Challenging Month appeared briefly to boost risk appetite.
Equity and oil moves
U.S. futures rose nearly 1% in Asian trading. EUROSTOXX 50 futures gained about 0.8%, reversing earlier losses.
Oil futures pared gains and turned negative later in the session. Brent crude remains poised for a record monthly rise in March.
Brent and energy pressure
Brent crude futures are up more than 50% month to date. The surge reflects the supply squeeze tied to the Gulf conflict.
Higher energy prices continue to pressure global inflation and investor sentiment.
Strait of Hormuz and shipping
The critical waterway has been effectively closed since the conflict began on February 28. That has tightened flows of seaborne oil through the Gulf.
Ship-tracking data showed two Chinese container vessels transited the strait on Monday. They had turned back on Friday and made a second attempt.
European inflation and policy response
Flash euro zone inflation data are due later in the day. Markets will watch for early signs of how the conflict affects consumer prices.
EU energy ministers are scheduled to meet to coordinate responses to oil and gas market disruption. An internal EU briefing outlined the agenda.
Currencies and regional data
The dollar is set for its sharpest monthly gain since July. It has benefited as a safe-haven amid the Gulf tensions.
The yen has weakened to around 160 per dollar. Japanese officials have intensified verbal interventions to support the currency.
Tokyo’s annual core inflation slowed to a near two-year low in March. Inflation remained below the central bank’s target for the second month.
Why that matters
Weaker yen raises import costs. Fuel subsidies have helped keep Tokyo’s core inflation subdued despite higher raw material prices.
- Euro zone flash inflation data (March)
- UK GDP (Q4)
- UK house prices (March)
- U.S. JOLTS job openings (February)
Markets remain sensitive to developments in the Gulf. Filmogaz.com will monitor incoming data and diplomatic signals closely.
