Market Commentary: Thursday 23rd April

Global markets weakened as rising geopolitical tensions between the US and Iran weighed on investor sentiment.

Stocks and bonds declined after stalled negotiations and the continued closure of the Strait of Hormuz pushed oil prices higher, with Brent crude climbing above $100 a barrel. The surge in energy costs raised concerns about inflation and economic growth, sending Asian equities lower and dragging down US futures and European markets. Government bonds also fell, with Treasury yields rising as investors anticipated prolonged price pressures from elevated oil.

Despite a recent record rally fuelled by strong corporate earnings and optimism around artificial intelligence, investors are becoming more cautious. While many companies — particularly in tech — continue to post solid results, the persistence of conflict and disrupted energy flows increases the risk of broader economic fallout. Analysts warn that markets may be overly optimistic about a quick resolution, and profit-taking could increase as geopolitical uncertainty lingers and major central bank meetings approach.

PMI data for the Eurozone, the UK, and the US will be the most impactful releases of the day.

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