Today’s Outlook :
• US MARKET : U.S. stocks closed sharply lower on Friday amid pressured sentiment due to the ongoing Middle East conflict. U.S. President Donald Trump’s decision to extend the deadline for attacks on Iranian energy infrastructure failed to ease market concerns. The benchmark S&P 500 fell 1.8% to 6,363.75 points, the NASDAQ Composite dropped 2.2% to 20,948.36 points, and the Dow Jones Industrial Average declined 1.7% to 45,167.44 points.
This decline extended losses from the previous session, amid uncertainty surrounding peace negotiations between the U.S. and Iran to end a conflict that has lasted nearly a month. Fighting in the Middle East continues with no signs of easing, including the effective closure of the Strait of Hormuz and threats of airstrikes on critical global energy facilities.
Israel and Iran exchanged attacks on Friday, while the Pentagon was reported to be continuing to deploy resources to the region, fueling speculation of a potential U.S. ground invasion of Iran. However, a report by Bloomberg News stated that Washington has no immediate plans for a ground invasion. Iranian state media also reported that the U.S. attacked two steel plants in Isfahan, and warned people in the West Asia region to stay away from facilities with American shareholders.
• EUROPEAN MARKET : European stocks declined on Friday, while oil prices remained elevated, as concerns over the impact of the ongoing Middle East conflict persisted—despite U.S. President Donald Trump extending the deadline for airstrikes on Iranian energy infrastructure until April 6.
The pan-European Stoxx 600 fell 0.9%, followed by DAX down 1.4%, CAC 40 down 0.9%, while FTSE 100 was flat. On the monetary policy front, the European Central Bank is expected to consider interest rate hikes in the coming months, in line with statements from several ECB officials this week. European government bond yields also rose, with France’s 10- year yield reaching its highest level since 2009.
• ASIAN MARKET : Most Asian stocks rose on Friday after U.S. President Donald Trump postponed strikes on Iran, offering temporary relief to markets. However, the prospect of a prolonged conflict continued to weigh on regional sentiment.
South Korean stocks recovered from a 3% decline earlier in the session but remained on track for steep weekly losses due to extended selloffs in major chip stocks. Memory chip makers Samsung Electronics and SK Hynix stabilized after falling over 4% earlier in the day, but were still expected to lose 7%–10% for the week. Both tracked declines in U.S. peers after Google, owned by Alphabet Inc., introduced a new compression algorithm, TurboQuant.
Overall, Asian stocks trimmed intraday losses but still posted muted weekly performance amid ongoing uncertainty surrounding the Iran conflict. Japan’s Nikkei 225 and TOPIX traded flat toward the close and were set for mild weekly gains. In China, the CSI 300 and Shanghai Composite each rose 0.7%, but were still down about 1.7% and 1.5% for the week. Meanwhile, the Hang Seng gained 0.2% but remained down 1.4% on a weekly basis.
• COMMODITIES : Oil prices surged sharply in early Monday trading after Yemen’s Houthi group attacked Israel over the weekend, signaling a potential widening of the Middle East conflict. Continued tensions between the U.S., Israel, and Iran also indicated little sign of de-escalation, with Tehran stating readiness to face U.S. ground forces.
Brent oil futures rose 2.2% to USD 115.08 per barrel at 19:05 ET (23:05 GMT), after earlier climbing as high as USD 116.43 per barrel. The Iran-backed Houthi group said on Sunday that it had launched missile attacks on Israel and vowed to continue further strikes. Their involvement raised concerns of escalation, given their capability to attack ships passing through the Red Sea. Israeli forces were reported to have struck targets in Iran’s capital over the weekend, while the U.S. said it had deployed 3,500 troops to the Middle East via the USS Tripoli.
• INDONESIA : The JCI declined again by -0.94%, closing at 7,097.1. Speaking of Indonesia’s current condition, it may be more prudent to focus on short-term scalping strategies with faster rhythms, given global volatility conditions and rising oil prices, which continue to act as negative sentiment weighing on the index.
Download Full Report HERE.
