MARKET WRAPS
European stocks appeared set to start the week on a low Monday, losing ground from last week's relief rally as investors assess the situation in the Middle East and wait for peace talks between the U.S. and Iran .
Approaching midday, the region's top indexes including the FTSE 100, the CAC 40, the DAX and the Stoxx Europe 600 were in negative territory. In early trading European energy companies gained and s
emiconductor companies fell .
The moves come amid renewed uncertainty in the Gulf region. Over the weekend Iran again closed the critical Strait of Hormuz, President Trump revived threats against Iranian infrastructure, and U.S. forces seized an Iranian-flagged ship accused of attempting to get by their blockade of Iranian ports.
The cease-fire between the U.S. and Iran is set to expire Tuesday evening.
The renewed escalation is a setback after Friday's rally and markets are in limbo at the moment, Commerzbank said.
"While markets ended last week with a sizeable risk-on rally, confusion over the status of the Strait of Hormuz has seen some of that optimism unwind as the new week gets underway," Pepperstone said .
Danske Bank warned markets were likely to remain volatile and that oil prices risk topping $100 a barrel if flows through Hormuz don't soon resume.
"Oil prices are being whipsawed by developments in the Middle East once again, with what appears to be de-escalation quickly turning to re-escalation," ING said .
Beyond geopolitics, April flash estimate purchasing managers' data for France, Germany and the eurozone are scheduled for Thursday.
Germany's ZEW economic sentiment index for April is due Tuesday and March U.K. inflation figures are scheduled for Wednesday.
U.S. Markets:
Stock futures pointed to a lower open Monday as developments in the Middle East weighed on sentiment.
Forex:
The dollar rose to a near one-week high as oil prices gained on renewed concerns about supply disruptions stemming from the Iran war.
Sterling was flat against the dollar, but it could weaken on political concerns as U.K. Prime Minister Keir Starmer will address lawmakers regarding his appointment of former U.S. ambassador Peter Mandelson.
Bonds:
Eurozone government bond yields rose, in tandem with Treasurys , amid renewed uncertainties about the Strait of Hormuz.
Morgan Stanley recommends an overall neutral stance on eurozone government bonds and is of the view that eurozone government bond tighteners do not offer particularly good value.
The eurozone government's bond syndication calendar looks light for the remainder of the year, Morgan Stanley added.
"For the remainder of April, we still expect Portugal to syndicate a new bond, while the syndication calendar for the rest of the year now appears relatively light."
Energy:
Oil prices rose more than 5% as shipping through the Strait of Hormuz remained restricted and after the U.S. seized an Iranian-flagged ship.
European natural-gas prices rose more than 4% as U.S.-Iran tensions dented hopes for a near-term diplomatic resolution in the Middle East.
Metals:
Gold prices fell after news that the Strait of Hormuz was closed again sent oil and gas prices higher, reviving concerns over inflation.
Silver futures fell while platinum declined.
EMEA HEADLINES
Germany Is Reinventing Itself as a Weapons Factory
BERLIN-As its export model breaks down, Germany is pivoting from cars to cannons-and trying to turn industrial decline into a defense boom.
After decades as Europe's manufacturing engine, the country is mired in its longest stretch of stagnation since World War II as it wrestles with competition from China and a slump in demand. The response is as stark as the crisis: recasting its industrial base as the West's arsenal.
U.A.E. Asks U.S. About a Wartime Financial Lifeline
WASHINGTON-The United Arab Emirates has opened talks with the U.S. about obtaining a financial backstop in case the Iran war plunges the oil-rich Persian Gulf state into a deeper crisis, U.S. officials said.
U.A.E. Central Bank Gov. Khaled Mohamed Balama raised the idea of a currency-swap line with Treasury Secretary Scott Bessent and Treasury and Federal Reserve officials in meetings in Washington last week, the officials said. The Emiratis emphasized that they had so far avoided the worst economic effects of the conflict but might still need a financial lifeline, the officials said.
Justice Department Rebuffs French on X Probe, Musk Interview
WASHINGTON-The Justice Department told French law enforcement authorities it wouldn't facilitate their efforts to investigate Elon Musk's X, after a raid on the social-media platform's Paris office earlier this year.
The Justice Department's Office of International Affairs, in a two-page letter dated Friday, accused the French of inappropriately using its justice system to interfere with an American business.
Big Oil Plows Billions Into Far-Flung Drilling Sites to Escape Iran Turmoil
Exxon Mobil, Chevron and other energy companies are speeding up their searches for new oil-and-gas prospects-far away from the perils of the war in the Middle East.
Exxon recently outlined a potential plan to pump up to $24 billion into Nigeria's deep-water oil fields, while Chevron expanded its footprint in Venezuela. BP bought stakes in oil blocks off the coast of Namibia, and TotalEnergies signed an exploration deal with Turkey. Major oil companies could together create $120 billion in value from their exploration ventures in coming years, the energy research and consulting firm Wood Mackenzie estimated Thursday.
GLOBAL NEWS
Stocks Are Back at Records, but Bond Investors Haven't Joined the Party
A disconnect is emerging on Wall Street: Stock investors are already celebrating as though the Iran war never happened, but other markets are telling a more cautious story.
While the S&P 500 and Nasdaq composite indexes are both at all-time highs, worries about lasting damage to Middle East energy infrastructure have kept longer-dated oil futures well above their prewar levels. Treasury yields also remain elevated, with investors concerned that higher inflation will make it harder for the Federal Reserve to cut interest rates.
Private Credit Is on the Hunt for Credit-Card Debt
When Wells Fargo told the fintech Bilt that it would no longer be the lender for its rent-rewards credit card, Bilt scrambled to find another large bank partner. When that failed, Bilt wound up with private-credit funding.
In February, Bilt struck a deal to move roughly $1.2 billion of credit-card balances with funding arranged by a group including Blue Owl Capital and Stone Point Capital as well as Goldman Sachs and TD, according to people familiar with the deal.
The Record Stock Market Rests on Some Big One-Offs
It's six months, give or take, since AI excitement drove stock valuations above their 2020 bubble high to reach the highest since 2000, the peak of the dot-com bubble.
Something odd has happened since: Valuations, measured as the price-to-earnings or PE ratio, have plunged, while stocks rose to a record high this week.
America Is in the Middle of a Stealth Manufacturing Boom
You won't hear this from either critics or fans of President Trump's tariffs, but there's a manufacturing revival going on.
The reason you haven't heard is that it doesn't easily fit either political narrative. Critics have focused on the fact that factory jobs have steadily slid since Trump took office last year.
In Fed Fight, Trump Faces the Senator With Nothing to Lose
WASHINGTON-The unstoppable force of President Trump has finally met an immovable object: Sen. Thom Tillis (R., N.C.).
Trump wants the Senate to confirm Kevin Warsh, his nominee to succeed Federal Reserve Chair Jerome Powell. A confirmation hearing is scheduled before the Senate Banking Committee this week. But Tillis has vowed to block any Fed nominee until the Justice Department ends its criminal probe of Powell, related to the renovation of the Fed's headquarters and some of Powell's testimony on the matter. And this time, he's not backing down.
Hegseth's Feud With Army Secretary Spills Into Public View
Soon after his first day at the Pentagon in early 2025, Army Secretary Dan Driscoll walked into his boss's office with a proposal. Driscoll, a longtime friend and aide to Vice President JD Vance, offered to organize a visit by Vance and President Trump to meet soldiers and talk about reforming the Army.
Defense Secretary Pete Hegseth raised his voice, telling Driscoll that he, Hegseth, was in charge and ordered Driscoll to stay in his lane, according to people familiar with the encounter.
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(END) Dow Jones Newswires
April 20, 2026 04:49 ET (08:49 GMT)
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