Oil eases, bringing some respite to stocks and battered bonds
SPY•World stocks edged up and Brent crude slipped to $103.50 a barrel after President Donald Trump said the United States would not attack Iran before next month’s midterm elections. Investors remained cautious as AI fundraising needs and elevated borrowing costs weighed on sentiment.
1. Stocks and oil
European shares opened higher and U.S. stock futures pointed to gains, while Brent crude dipped to $103.50 a barrel after rising more than 4% in the previous session. Asia-Pacific shares outside Japan rose 0.5% but remained on track for a weekly decline of about 0.7%; Japan’s Nikkei was little changed.
2. AI funding concerns
Investors assessed expected fundraising by SpaceX, Broadcom and Oracle to buy advanced AI chips. Firmus, an Australian data centre operator backed by Nvidia, shelved its planned $5 billion IPO, citing market volatility, and said it would pursue a private fundraising round. Investors also weighed concerns about AI valuations and the cost of funding infrastructure.
3. Bond market focus
U.S. Treasury yields ticked higher after falling on Thursday, when a 30-year bond sale drew solid demand. European government borrowing costs were broadly lower following a sharp selloff; the premium on 10-year French debt over German Bunds stood at about 136 basis points and was on track to narrow nearly 5 basis points for the week. Investors continued to scrutinise France’s debt burden, budget deficit and political outlook ahead of the 2027 presidential election.
