Latest Finance-Economy News
Stocks Slump as Trump Signals No Rush to End Iran War
Global markets entered a selloff with S&P 500 futures flat and Europe's Stoxx 600 down 0.92% as President Trump indicated no urgency to resolve the US-Iran conflict. Oil prices spiked again, exacerbating geopolitical risk sentiment and pressuring equities.
The U.K.'s FTSE also declined amid the broader downturn.
Oil Surges on Escalating Strait of Hormuz Tensions
Crude oil prices rose sharply due to stalemated Iran talks and risks in the Strait of Hormuz, unsettling global markets. Elevated Middle East-driven oil levels are supporting safe-haven demand while pressuring corporate margins worldwide.
This has led to renewed volatility in energy and equity sectors.
US Dollar Strengthens Near Weekly Highs Amid Geopolitical Risks
The Dollar Index (DXY) held firm around 98.4, bolstered by safe-haven flows from US-Iran ceasefire doubts and Trump's indefinite extension. Hawkish Fed signals and robust US retail sales further supported the currency against majors.
Structural advantages like US oil exports add to its resilience.
Atlanta Fed GDPNow Estimates Q1 2026 Growth at 2.1%-2.7%
US economic activity cooled to an estimated 2.1%-2.7% growth for Q1 2026 after robust Q4 2025 near 5%, per Atlanta Fed data. Softer indicators reflect oil shocks and geopolitical fragilities impacting momentum.
Revised UoM Consumer Sentiment data is awaited for further insights.
Fed Maintains Data-Dependent Stance with Rates at 3.50%-3.75%
The FOMC holds rates amid softening labor market, above-target inflation, and new oil shocks, with possible hawkish dissents on cuts. Quantitative tightening continues with adjusted Treasury and MBS rolloffs to ensure reserves.
Markets anticipate a March hold at 3.85%.
Blackstone's Jon Gray: AI is the Single Biggest Economic Driver
Blackstone President Jon Gray highlighted AI as the primary driver fueling the firm's optimistic outlook for its 'best year ever'. This comes amid building IPO momentum and a wave of corporate earnings.
AI investments are ramping up across sectors like Tesla's $25 billion spend.
RBA Eyes Potential Rate Hike to 4.10% if Inflation Persists
Big four Australian banks are split, with CBA, NAB, and Westpac forecasting a May hike to 4.10% amid sticky inflation. Upcoming monthly CPI will be pivotal for Q2 policy direction.
Policy remains vigilant against household fragilities and global uncertainties.
RBNZ Forecasts Possible OCR Hikes Starting Late 2026
New Zealand's central bank sees balanced risks with potential OCR increases to 2.50% by late 2026 if inflation and activity firm. Stronger exports and softer NZD offset oil shocks.
Next meeting is May 27, 2026, with supportive policy if recovery is gradual.
Corporate Earnings Hit by Fuel Costs and Iran Jitters
American Airlines braces for soaring jet fuel costs, Intel beats earnings despite market falls from Iran concerns. Tesla plans $25 billion AI spend, while AmEx notes cooling travel demand.
ServiceNow emphasizes sustained growth amid volatility.
Global Economy Resilient but Trade Tensions Weigh on Growth
J.P. Morgan forecasts 2026 resilience despite trade tensions and conflict risks curbing expansion. Finance teams prioritize liquidity optimization and real-time visibility in volatile conditions.
Trends include AI fraud defense, payments evolution, and blockchain integration.
Japanese Yen Gains Medium Bullish Bias on Regional Tech Rally
The Yen shows medium bullish momentum amid record-high tech indices in Japan, South Korea, and Taiwan. China's steady-rate policy and oil pressures influence Asia sentiment.
Geopolitical risks balance equity optimism with safe-haven flows.
Payments Trends 2026: Liquidity and Blockchain in Focus
Key shifts include reimagined liquidity via real-time views, connected treasury, and blockchain unlocking. AI advances create fraud opportunities and defenses for seamless payments.
Streamlining entities and ERP integration boosts cash visibility.