As of 12:00 Germany time (CEST, UTC+2)
TL;DR: Yen intervention risk, higher oil and renewed tariff pressure on European autos shaped the cross-asset tape into Monday’s European session.
In Asian Equity Markets stocks traded mixed on Monday as investors balanced strong technology momentum against renewed geopolitical and energy-market risk. South Korea’s KOSPI surged more than 5 percent and Hong Kong’s Hang Seng Index gained around 1.2 percent, helped by strength in technology shares and the positive spillover from Friday’s Wall Street session. Taiwan stocks also rallied, supported by semiconductor names, while Australia’s S&P/ASX 200 slipped around 0.4 percent. Japanese markets were closed for a holiday, leaving regional trading thinner than usual and amplifying focus on moves in the yen and oil.
In Currency Markets the Japanese yen remained the main focus after another sudden intraday rally fuelled speculation that authorities may have stepped in again to support the currency. The dollar briefly fell below 156 yen before partially recovering, with traders still on alert after Tokyo was believed to have spent around 5.48 trillion yen, or roughly $35 billion, buying yen last week. The move came during thin holiday trading in Japan, reinforcing the view that officials are trying to discourage one-way speculative pressure. Elsewhere, the dollar was firmer as geopolitical risk and higher oil prices supported defensive positioning, while the euro and sterling were broadly steady.
In US Equity Markets the S&P 500 and Nasdaq advanced to record closing highs on Friday, helped by strong earnings and renewed optimism around technology shares. The S&P 500 gained 0.29 percent, while the Nasdaq rose 0.89 percent and closed above the 25,000 level for the first time. The Dow slipped 0.31 percent. Apple climbed after strong guidance, while software stocks were supported by better outlooks from selected names. The S&P 500 and Nasdaq also posted their sixth consecutive weekly gains, extending the rebound after April delivered the strongest monthly performance in years for both major indexes.
In Commodities Markets oil prices moved higher again as investors watched developments around the Strait of Hormuz and the broader U.S.-Iran conflict. Brent crude rose above $110 per barrel, while U.S. crude traded above $103, reversing some of the previous pullback as markets reacted to new Gulf proposals and continued uncertainty over maritime flows. The move kept energy prices central to the inflation debate, particularly for oil-importing economies and currencies already under pressure. Gold remained supported by geopolitical uncertainty and defensive demand, although stronger dollar conditions limited some of the upside in precious metals.
In European Equity Markets stocks edged lower by late morning as renewed U.S. tariff threats hit the automobile sector and offset gains in selected technology and industrial names. The pan-European STOXX 600 was down around 0.2 percent, while Germany’s DAX was broadly flat and London markets were closed for a public holiday. European automakers were under pressure after President Trump said tariffs on EU-made cars and trucks could rise from 15 percent to 25 percent. BMW and Mercedes fell around 2 percent each, while Continental dropped more than 4 percent. Technology names were firmer, with SAP and semiconductor-related stocks helping cushion the broader index.
In Bond Markets yields moved higher as oil’s rebound revived concerns that energy prices could keep inflation sticky and limit the room for central banks to ease policy. Germany’s 10-year yield rose around 5 bps to just above 3 percent, reflecting pressure on eurozone bonds as investors assessed both tariff risk and Middle East uncertainty. U.S. Treasury yields were also under upward pressure as markets continued to scale back expectations for near-term Federal Reserve rate cuts. The rates backdrop remained shaped by the same tension driving broader markets: solid equity earnings and resilient risk appetite on one side, against higher energy prices and inflation risk on the other.
