By Dow Jones Newswires Staff
U.S. Treasury yields slipped and oil surged again as investors fixed their attention on the widening Middle East war's implications for global growth.
Brent crude rose above $115 a barrel, while WTI, the U.S. oil gauge, climbed above $100 a barrel. More U.S. troops arrived in the Middle East as President Trump considered a ground operation to extract Iran's uranium, The Wall Street Journal reported. The report came after Iran-backed Houthi rebels in Yemen fired on Israel, adding risk to shipping through the Bab al-Mandeb strait--a key alternative to the Strait of Hormuz for Gulf oil exports.
Aluminum prices jumped after Iran struck producers of the metal in Bahrain and the United Arab Emirates. The yen strengthened as Japan's central bank governor became the latest official to signal willingness to intervene in order to stabilize the currency.
Brent crude rose 2.6% to $115.45 a barrel and is up nearly 60% on the month, while WTI gained 1.3% to $100.98 a barrel. Market watchers say the conflict shows little sign of de-escalation, with focus shifting to the vulnerability of alternative oil export routes.
Three-month aluminum futures on the London Metal Exchange gained 5.4% to $3,461 a metric ton and were up more than 10% on the month. "About 4 million-5 million tons of exports from the region remain at risk, and there is no alternative supply to cover the shortfall," analysts at ANZ said.
Aluminium Bahrain, one of the world's largest aluminum producers, confirmed that its facilities were targeted in an Iranian attack and said it was assessing the damage. Emirates Global Aluminium said its production plant at Al Taweelah sustained significant damage in an Iranian drone and missile attack on Abu Dhabi.
--U.S. equity futures nudged higher. Futures tied to the Dow Jones Industrial Average, the S&P 500 and the tech-heavy Nasdaq all gained around 0.4%.
--Asian equities mostly declined on Monday. South Korea's Kospi led the losses, ending down 3.0%, weighed by chip and auto stocks. Japan's Nikkei Stock Average fell 2.8% and Hong Kong's Hang Seng Index was 0.9% lower.
--European stock indexes struggled for early direction as strong utilities and energy stocks support blue-chip indexes in the face of rising oil prices. Banks struggled across the continent as an escalating Middle East war weighs on the growth outlook. The industrials-heavy German DAX edged down 0.2%, with energy-sensitive Rheinmetall down 1.8%. Societe Generale was 1% lower in Paris, where the CAC 40 traded flat. Higher aluminum and oil prices supported basic materials and energy companies, helping the U.K.'s FTSE 100 to rise 0.1%. Spain's IBEX 35 was 0.2% higher, while the Italian FTSE MIB slips 0.1%
--The dollar eased slightly after reaching a two-week high overnight on increased demand for safe havens. The dollar's pullback reflects a stronger Japanese yen after Japan's top currency diplomat, Atsushi Mimura, said Monday that authorities might need to take decisive steps to curb the currency's weakness. Bank of Japan Gov. Kazuo Ueda also pledged to monitor the yen's moves. The DXY dollar index fell 0.1% to 100.097 after reaching a high of 100.342 overnight
--U.S. Treasury yields fell in Asian trade as rising growth fears outweighed inflation fears. LBBW said it expects economies on both sides of the Atlantic will suffer growth losses of around a quarter of a percentage point in the current year compared to its previous main scenario. The two-year Treasury yield fell 3.9 basis points to 3.875%; the 10-year yield was down 5.2 bps at 4.387%, according to Tradeweb
Eurozone government bond yields fell, tracking U.S. Treasury yields. The 10-year German Bund yield dropped 2.2 basis points to 3.083%, while the 10-year Italian BTP yield was down 3.7bps at 4.035%, according to Tradeweb
--Bitcoin rose 1.2% to $67,347 after reaching a one-month low of $64,991 overnight, LSEG data show.
--Gold prices rose in early trading, but gains remain capped as higher energy prices continue to fuel concerns over inflation and tighter monetary policy from central banks. Futures in New York gain 0.9% to $4,533.30 a troy ounce. "Gold rebounded late last week as opportunistic buyers emerged after the biggest sell-off in years," ANZ analysts said. "Prices have fallen more than 15% this month, pressured by the liquidation of gold-backed exchange-traded funds." Still, gold was down more than 13% on the month, pressured by a stronger U.S. dollar and climbing oil prices.
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
03-30-26 0506ET
