Global markets started the week on a mixed note, with US stock futures rising 0.3% and European futures gaining 0.6% as oil prices eased. Asian equities underperformed, with MSCI’s regional index falling 0.2% and South Korean stocks dropping 3% after the long weekend. Investors balanced hopes for calmer energy markets against renewed security concerns in the Middle East.

Brent crude fell 1.2% to $103.43 a barrel after climbing to $105.63 earlier in the session. The retreat followed reports of a potential energy ceasefire between Russia and Ukraine, although renewed Houthi attacks on Riyadh’s main airport heightened concerns over regional stability. The attacks have increased pressure on Saudi Arabia and raised the risk of further escalation across the Persian Gulf. Gold moved higher for a third consecutive session, trading near $4,200 an ounce.

In fixed income, Treasury futures edged higher alongside government bonds in Australia and New Zealand, while cash Treasuries remained closed for the US holiday. In currency markets, India’s Rupee gained 1% after the central bank introduced measures to support the currency, among its strongest actions since the 2013 taper tantrum.

Trade relations also remained in focus as China and the European Union reached a 16-point consensus covering investment, export controls, intellectual property and trade. Beijing agreed to substantially reduce hybrid vehicle exports to the EU, while European officials are considering safeguards to limit imports. However, the agreement is unlikely to resolve wider disagreements over trade imbalances and market access.

Looking ahead, investors will focus on US consumer-price data and a scheduled appearance by Fed Chair Warsh for fresh signals on inflation and the outlook for interest rates. With energy prices, geopolitical tensions and trade policy continuing to shape sentiment, markets remain sensitive to developments across both the Middle East and the global economy.

FISG Daily Market Wrap provides a concise view of the forces moving global markets, helping investors stay informed and better prepared for what comes next.

FISG — Interstellar Group