US stock markets remained closed on Monday in observance of the Labor Day holiday, while futures dipped in thin holiday trading as elevated oil prices kept investors cautious. European markets delivered a muted performance, weighed down by rising crude costs and a decline in shares of Novartis.
In geopolitical news, former President Trump threatened to block sales of Canadian aerospace firm Bombardier products in the United States. The US military reported that its maritime blockade near Iran has prompted 94 commercial vessels to alter their routes. The US presidential envoy stated that the American delegation's visit to Russia and Ukraine achieved "tangible progress". The escalating US-Canada trade dispute shows signs of intensifying, with retaliatory measures being prepared while new threats emerge from Washington. The UK Prime Minister and the US President held a phone conversation covering the Russia-Ukraine conflict and other topics.
Iran unveiled a new missile system and asserted that safe passage for US vessels through the Strait of Hormuz is now effectively unattainable. Ukrainian President Zelensky indicated that the US is exploring potential measures to de-escalate the conflict in Ukraine during the winter months. Finland has completed the construction of its border fence system along the Finnish-Russian frontier, with possible future expansions planned. Hamas alleged that Israel's clearing of rubble in Gaza is an attempt to erase evidence of "war crimes". In response to Trump's interest in Greenland, the EU is planning to invest €200 million to strengthen ties with the region. Reports indicate that Saudi Aramco's oil facility in Jizan has been attacked once again.
On the corporate front, OpenAI's chief scientist suggested that AI could soon enter a phase of self-evolution and expressed hope that the industry would voluntarily slow its development pace. The US National Transportation Safety Board confirmed that the black boxes from the Boeing cargo plane that overran the runway have been recovered. The NTSB reported that an Amazon cargo aircraft crashed in Miami, overrunning the runway by 1,300 feet and striking two vehicles, resulting in five fatalities and five injuries. Europe's space sector is witnessing the rise of a new challenger as Isar Aerospace completes its inaugural successful flight, with an order backlog exceeding €10 billion. Adding to the trend of wealthy Britons relocating abroad, hedge fund founder Chris Rokos has moved to Greece.
In market commentary, London copper futures surged to a record high of $14,533 per tonne amid speculation over tariffs. Strategists at Deutsche Bank argue that traders are misjudging the extent of potential interest rate hikes by the US and European central banks. Oil prices climbed to six-week highs, driven by mutual hostilities between Iran and the US, as well as the attack on Saudi Aramco's facilities. European bond markets saw German bunds decline for a fifth consecutive session, while UK gilt yields rose approximately 4 basis points across maturities. In a rare move, a Qatari LNG carrier attempted to navigate out of the Strait of Hormuz, signalling a potential resumption of export flows.
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