Stocks attempted to stabilise after recent losses as Asian equities rebounded for the first time since the escalation in the conflict in Iran. The MSCI Asia Pacific Index rose 2.3%, with South Korea’s Kospi surging almost 10% after its record crash earlier in the week. The bounce followed a rally on Wall Street after economic data eased some inflation concerns, though futures point to a softer open in the West, with both US and European equity futures trading lower.
Oil remained the key driver of sentiment as the conflict between the US, Israel, and Iran continued to disrupt energy markets. Brent crude pushed toward $85 a barrel after gaining roughly 12% earlier in the week, raising concerns that a sustained rise in energy prices could reignite inflation pressures and delay central bank easing. US 10-year yields climbed to around 4.11% as bond markets extended their recent selloff.
The dollar strengthened for a third time in four sessions, reinforcing its safe-haven appeal as investors weighed the risk that the conflict could drag on. For now, markets appear to be treating the geopolitical shock as a temporary risk event, though sentiment remains fragile and highly sensitive to developments in the Middle East.
• S&P 500 futures −0.3%
• Nasdaq 100 futures −0.3%
• US 10-year yield +2 bps to 4.11%
• Bitcoin −1.1% to $72,570
• Gold +0.3% to $5,157
• WTI +3.1% to $76.94
