HFMarkets: New market analysis services.

[HFM.]

Date: 18th May 2026.

US-Iran Tensions, Bond Yields and Gold Pressure Markets.

\
Negotiations between the US and Iran are not witnessing progress, and the US is again taking into consideration further attacks. As a result, investors are pricing in further supply chain disruptions due to the Strait of Hormuz remaining shut.

A big concern for the market is the selloff within the global bond market, particularly in the US and UK. The US 10-Year Bond Yield has risen to 4.615%, the highest since January 2025. In addition to the above, investors are also predicting that the possibility of further interest rate hikes will increase as oil prices rise again.

US and Iran Negotiations​

Over the weekend, President Trump spoke to members of the media, expressing his frustration with Iran and the lack of progress. The President’s language was particularly aggressive, advising that ‘time is of the essence’.

The US and Iran remain deeply divided over an agreement to end the conflict and reopen the Strait of Hormuz. Judging by the comments from both representatives over the weekend, the reopening of the Strait any time soon remains unlikely. Meanwhile, a drone attack triggered a fire at a nuclear plant in the United Arab Emirates, while the global bond sell-off intensified amid the ongoing deadlock between Washington and Tehran.

In addition to the above, reports suggest that the US administration is taking into consideration further action against Iran. These include policy measures, Non-military developments as well as further direct attacks on Iran. If the conflict escalates further the market is likely to take on a ‘risk-off’ appetite. As a result, the US Dollar and crude oil may potentially rise further.

NASDAQ Fights The Market’s Risk-Off Sentiment​

All global indices fell on Monday due to the low sentiment among investors as bond yields and crude oil prices rise. The rise in bond yields is likely to trigger higher interest rates, even without the Federal Reserve adjusting monetary policy. However, inflation and oil prices also increase the possibility of rate adjustments.

During periods of low-risk sentiment, the NASDAQ usually underperforms other major indices. However, today it is outperforming the broader market. Although all indices are declining, the NASDAQ is holding up best. This is likely due to the upcoming NVIDIA earnings report and continued AI-trend optimism.

HFM - NASDAQ 1-Hour

The NASDAQ is trading slightly below the VWAP, which gives a bearish bias, but the price has risen above the key moving average. Indications will depend on whether the price rebounds away from the moving average or if the price continues to rise. If the price falls below $28,992.75, sell signals will arise and will potentially strengthen if it falls further below $28,927.60.

XAUUSD Falls To Its Lowest Since March 2026​

During the Asian session, the price of Gold fell quickly close to a two-month low but thereafter was quick to rebound. The decline was triggered by the rise in the Dollar and bond yields. However, the Dollar is now retracing lower but still remains high, pressuring Gold.

Gold remains under short-term pressure today, with the bias staying bearish while the price trades below the $4,576–$4,580 resistance area. A break below $4,510 could reopen downside towards $4,480 and lower, while a move back above $4,580 would suggest buyers are regaining control, with the next recovery targets around $4,645–$4,700.

Though the price will continue to depend on the US Dollar, bond yields, and developments within the Middle East. According to economists, if bond yields rise to 5.00%, investors are likely to panic and become risk-averse.

Key Takeaways:​

• US-Iran talks remain stalled, keeping the Strait of Hormuz closed and raising fears of further supply-chain disruption.
• Global bond yields continue to rise, increasing pressure on equities and gold while supporting the US Dollar.
• The NASDAQ is outperforming other indices, supported by NVIDIA earnings expectations and continued AI-sector optimism.
• Gold remains under pressure, with higher bond yields and a stronger Dollar pushing XAUUSD near a two-month low.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Michalis Efthymiou
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

 

[HFM.]

Date: 19th May 2026.

Markets on Edge: Rising Yields, Oil Volatility, and AI Stocks Under Pressure.

Global markets are entering the new trading day with investors facing a difficult mix of geopolitical uncertainty, surging bond yields, and renewed pressure on high-growth technology shares. After months of AI-driven optimism pushing equities to record highs, markets are now confronting the reality of elevated inflation risks and the possibility of interest rates staying higher for longer.

Asian Markets Slide as Tech Stocks Lead Losses​

Asian equities traded mostly lower during Tuesday’s session, with technology shares once again under heavy pressure. South Korea’s KOSPI dropped sharply as semiconductor giants came under renewed selling pressure, reflecting weakness seen overnight in US chipmakers.

The broader MSCI Asia Pacific Index declined as investors rotated away from risk assets and toward safer positions amid growing uncertainty surrounding the Middle East conflict and global interest rates.

Japanese equities also weakened despite stronger-than-expected GDP data. Although Japan’s economy expanded for a second consecutive quarter, investors largely ignored the positive economic figures and instead focused on rising global bond yields and energy-driven inflation risks.

Meanwhile, Hong Kong markets managed modest gains, while Chinese equities remained under pressure as investor sentiment across the region deteriorated.

Bond Yields Become the Market’s Main Concern​

One of the biggest themes dominating financial markets is the relentless rise in government bond yields.

The yield on the US 30-year Treasury climbed above 5.1%, reaching its highest level since 2023, while Japan’s 30-year government bond yield surged to record highs not seen since the bond was first introduced in 1999.

Markets are increasingly worried that elevated oil prices and resilient economic data could force central banks, especially the Federal Reserve, to maintain restrictive monetary policy for longer than investors had previously expected.

Historically, rising Treasury yields have created significant headwinds for equities, particularly growth and technology stocks. Higher yields reduce the attractiveness of future earnings projections, which directly impacts richly valued AI and semiconductor companies that have led the recent rally.

This concern is becoming increasingly visible in valuations. The Nasdaq 100 is currently trading above its long-term average forward earnings multiple, leaving the sector vulnerable to corrections if financing conditions tighten further.

AI Rally Faces Its Biggest Test Yet​

The artificial intelligence boom has been the dominant driver of global equity performance throughout the year. However, the environment is becoming more challenging.

Chipmakers and AI-related stocks came under renewed pressure after weakness in the Philadelphia Semiconductor Index extended into a second session. Investors are beginning to question whether current valuations can remain justified if borrowing costs continue climbing.

Several major technology stories are also shaping market sentiment:

• NVIDIA Corporation remains in focus ahead of earnings, with investors watching closely for signs that AI demand remains strong.
• Seagate Technology suffered a sharp decline after management’s comments raised concerns about its ability to keep up with soaring memory demand.
• Standard Chartered announced plans to cut thousands of support roles as banks increasingly integrate artificial intelligence into operations.
• Google and Blackstone Inc are reportedly working on a new AI cloud venture designed to compete with existing infrastructure providers.

The market’s current challenge is balancing long-term AI optimism against short-term macroeconomic risks.

Oil Prices Remain the Key Market Driver​

Energy markets continue to dominate global sentiment as traders closely monitor developments surrounding Iran and the Strait of Hormuz.

Although Donald Trump stated that planned US military strikes on Iran were postponed due to ongoing negotiations, oil prices remain historically elevated.

Brent crude slipped below $110 per barrel after the announcement, while West Texas Intermediate traded near $103. However, crude prices remain dramatically higher compared with pre-conflict levels.

The near-total disruption of shipping through the Strait of Hormuz continues to raise fears of prolonged supply shortages, especially for Asian economies heavily dependent on imported energy.

Higher oil prices are now feeding directly into inflation expectations globally, complicating the outlook for central banks and increasing pressure on both bonds and equities.

Gold Retreats as Yields and Dollar Rise​

Despite ongoing geopolitical tensions, Gold moved lower as rising Treasury yields and a stronger US dollar reduced the appeal of non-yielding assets.

Gold prices retreated toward $4,540 per ounce after briefly rallying earlier in the week. Investors appear to be balancing safe-haven demand against expectations that higher interest rates may persist longer than anticipated.

The US dollar also continued strengthening as investors sought defensive positioning amid market uncertainty.

What Traders Should Watch Today​

Markets remain extremely sensitive to headlines related to the Middle East conflict, oil supply disruptions, and bond market movements.

Key themes traders will monitor throughout the session include:

• Developments regarding US-Iran negotiations
• Movements in Treasury yields
• Crude oil volatility and Strait of Hormuz updates
• Upcoming earnings from major AI and technology companies
• Central bank expectations and inflation outlook

The current environment suggests volatility is likely to remain elevated. While AI optimism continues to provide long-term support for equities, rising yields and persistent energy inflation are beginning to challenge the sustainability of the rally.

For traders, today’s session may revolve around whether markets continue rotating into defensive positioning or whether buyers return to risk assets following recent pullbacks.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

 

[HFM.]

Date: 21st May 2026.

Strong NVIDIA Earnings: Why the Weak Reaction?

NVIDIA’s quarterly earnings report continues to deliver very strong results and guidance for the upcoming quarter, though the stock’s reaction was relatively weak in the short term. At times during the hours after NVIDIA’s report was made public, the stock rose, but at the moment it is trading 1.25% higher.

Economists argue that investors had already priced in a strong quarter and did not find the results surprising. In addition, the stock has already gained 70% over the past 12 months, suggesting traders are satisfied with both the gains and the current price. For this reason, the reaction remains relatively muted, although it supports the broader stock market.

The NASDAQ and US stock market are seeing both up and down price movement during this morning’s Asian session. This is partially due to traders waiting for the US market to open in order to digest the NVIDIA news, as well as the tug-of-war between positive earnings and geopolitical issues.

The NASDAQ Reacts to NVIDIA’s Strong Earnings Report​

Over the past week, the NASDAQ formed a clear double bottom pattern, followed by a reversed head and shoulders pattern. Both patterns indicate upward price movement due to the index finding support. The key drivers will remain NVIDIA’s earnings report, as well as factors forming due to the US-Iran conflict.

In regards to NVIDIA, the main story is still AI infrastructure demand. Earnings per share were $1.87 and revenue was just over $81 billion, both higher than expectations. Data Centre revenue now represents the overwhelming majority of NVIDIA’s business, driven by demand for AI chips, networking, and full-stack AI systems.

NVIDIA also reported record Data Center compute revenue of $60.4 billion and networking revenue of $14.8 billion, showing that growth is not only from GPUs but also from the broader AI infrastructure ecosystem.

In addition to this, investors are closely monitoring developments within the Middle East. Even though some reports suggest that the negotiations are close to producing a memorandum, the US President and Iran remain in a war of words. This morning, both the US Dollar and crude oil are trading higher due to this. Any escalation causing higher inflation and a further bond selloff can pressure the NASDAQ’s trend.

HFM - NASDAQ 15-Minute Chart

In the short term, if the price falls below $29,178.40, sell signals are likely to arise. However, if the price rises above $29,288.20, buy signals can strengthen further. All global indices are trading lower this morning, giving a slight bearish bias. However, markets will monitor the price action as the US session opens.

Gold Remains Under Pressure from the Dollar And Iran Conflict​

The price of Gold continues to come under pressure from bond yields, the US Dollar, and global monetary policy. These three elements are tied to the conflict in the Middle East.

US President Donald Trump again demanded Iran’s compliance with White House conditions. However, Iran continues to insist on sanctions relief and access to frozen assets before negotiations continue. According to Al Arabiya, US and Iranian representatives may meet in Islamabad after the Hajj season, with this year’s main rituals falling on May 25-29. Mediators from Qatar, Saudi Arabia, Turkey, and Egypt have recently worked to bridge the gaps. Iran now needs to offer specific nuclear commitments, while the US must clarify the process for unblocking Iranian funds.

HFM - XAUUSD 1-Hour Chart

On the 1-hour chart, the price of Gold continues to trade below the key moving averages and below the VWAP. However, the price remains within the neutral level of the RSI and the MACD. For this reason, Gold is not experiencing sell signals from all indicators, but is seeing a bearish bias.

Key Takeaways:​

• NVIDIA delivered strong earnings and guidance, but the reaction remains weak because investors had already priced in a strong quarter.
• AI infrastructure remains NVIDIA’s main growth driver, with Data Centre revenue now representing the majority of the business.
• The NASDAQ remains sensitive to both NVIDIA’s performance and geopolitical risks, especially developments in the US-Iran conflict.
• Gold remains under pressure from a stronger US Dollar, higher bond yields, and uncertainty around global monetary policy.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Michalis Efthymiou
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

 

[HFM.]

Date: 25th May 2026.

Global Markets Rally as Iran Peace Talks Progress | Oil Prices Fall, Stocks Surge & Gold Rebounds.

Asian Stocks Rise While Oil Prices Tumble on Hopes of a US-Iran Agreement​

Global financial markets started the week on a strong footing as optimism surrounding US-Iran peace negotiations boosted investor sentiment and triggered a sharp decline in oil prices. Asian equities rallied, Wall Street futures advanced, and the US dollar weakened as traders increasingly priced in the possibility of a diplomatic resolution that could reopen the Strait of Hormuz and restore disrupted energy flows.

The developments mark a major turning point for financial markets after months of heightened geopolitical tensions, soaring energy prices, and persistent inflation fears driven by the ongoing conflict in the Middle East.

Why the Strait of Hormuz Matters to Global Markets​

The Strait of Hormuz remains one of the world’s most strategically important shipping routes, handling a significant portion of global crude oil exports.

Since the outbreak of the Iran conflict earlier this year, disruptions in the strait severely impacted global oil transportation, tightening supply conditions and driving crude prices sharply higher. Countries heavily dependent on imported energy, including Japan and several European economies, faced rising energy costs and growing inflationary pressure.

Now, hopes that the strait could fully reopen are reshaping market expectations.

According to regional reports and US officials, negotiations between Washington and Tehran are progressing, with discussions focusing on:

• reopening the Strait of Hormuz,
• restoring oil shipments,
• extending ceasefire agreements,
• and reducing regional tensions.

Although US President Donald Trump stated that negotiations are moving ‘constructively,’ he also cautioned that the United States would not rush into a final agreement.

This uncertainty continues to keep markets highly sensitive to geopolitical headlines.

Oil Prices Drop as Supply Fears Ease​

Crude oil markets reacted immediately to the diplomatic developments.

Brent crude fell more than 5%, dropping below $98 per barrel, while West Texas Intermediate (WTI) crude slid toward the $91 level. The sharp decline reflects expectations that global supply disruptions could ease if tanker traffic through Hormuz resumes normally.

The market reaction was also supported by reports that:

• liquefied natural gas tankers have resumed movement through the strait,
• commercial vessels are once again receiving transit authorisation,
• and some previously stranded crude shipments have successfully departed the Gulf region.

Lower oil prices helped improve broader market sentiment because traders now anticipate:

• reduced inflationary pressure,
• easing transportation costs,
• and lower risks of a prolonged global energy shock.

However, analysts warn that volatility may remain elevated because negotiations are still ongoing and the energy supply chain may take months to fully normalise.

Asian Stock Markets Rally to Record Highs​

Asian equity markets responded positively to the improving geopolitical outlook.

Japan’s Nikkei 225 surged nearly 3% to fresh record highs, driven by gains in technology and export-oriented companies. Taiwan’s market also advanced strongly, while mainland Chinese equities moved higher despite lingering concerns over domestic regulatory developments.

Broader investor appetite for risk returned as traders shifted focus away from war-driven uncertainty and back toward economic growth opportunities and artificial intelligence-related momentum.

The rally extended to US equity futures, with both S&P 500 and Nasdaq futures climbing sharply ahead of the Memorial Day holiday closure in the United States.

The MSCI All Country World Index also approached all-time highs as global investors embraced a renewed risk-on environment.

The US Dollar Weakens as Risk Appetite Improves​

Currency markets reflected the changing investor sentiment.

The US dollar weakened against most major currencies, while the euro, British pound, and Japanese yen gained ground.

The decline in the dollar was fuelled by:

• falling oil prices,
• improving market confidence,
• and expectations that easing inflation pressures could eventually reduce the need for aggressive monetary tightening.

A weaker dollar also provided additional support for commodities and precious metals.

Gold Prices Rebound Despite Easing Geopolitical Tensions​

Gold prices moved higher even as geopolitical fears eased, an unusual but important signal for traders.

Typically, improving global stability pressures safe-haven assets lower. However, this time gold benefited from:

• the weakening US dollar,
• declining Treasury yields,
• and expectations that lower oil prices may help contain inflation over the medium term.

Spot gold climbed back above $4,550 per ounce after recent losses, although prices remain significantly below the highs reached during the peak of the conflict earlier this year.

Market participants are also closely monitoring the policy stance of new Federal Reserve Chair Kevin Warsh, as investors attempt to gauge the future direction of interest rates.

Inflation and Interest Rates Remain a Major Market Concern​

Despite the recent decline in oil prices, inflation concerns have not disappeared.

Energy prices surged dramatically during the conflict, contributing to elevated global inflation expectations and pushing bond yields higher across major economies.

Markets are currently reassessing the outlook for central bank policy, particularly in the United States.

Traders are increasingly focused on:

• upcoming US inflation data,
• Personal Consumption Expenditures (PCE) figures,
• Federal Reserve commentary,
• and the possibility that interest rates could remain higher for longer.

While falling crude prices may ease inflationary pressure, analysts caution that:

• supply chains remain fragile,
• energy markets are still vulnerable,
• and geopolitical risks have not fully disappeared.

As a result, interest rate volatility may continue to dominate trading conditions throughout the second half of 2026.

China’s Crackdown on Cross-Border Trading Creates Additional Uncertainty​

Alongside geopolitical developments, investors are also monitoring regulatory risks emerging from China.

Chinese authorities launched a major crackdown on illicit cross-border stock trading in an effort to reduce capital outflows and strengthen domestic financial controls.

Regulators imposed heavy fines on online brokerages, including:

• Futu Holdings Ltd
• Up Fintech Holding Ltd

Authorities also ordered illegal offshore trading accounts to be liquidated within two years.

The move triggered:

• sharp declines in Chinese-linked technology stocks,
• increased uncertainty surrounding Hong Kong market liquidity,
• and concerns over tighter restrictions on international investing.

For traders, the crackdown highlights how regulatory policy remains an important driver of market volatility, particularly within Chinese and emerging market assets.

Key Market Themes Traders Should Watch​

As markets continue reacting to geopolitical and macroeconomic developments, traders should closely monitor several major themes:

1. US-Iran Negotiations: Any confirmation of a finalised agreement could trigger further declines in oil prices and support risk assets globally.
2. Strait of Hormuz Reopening: The speed and scale of shipping normalisation will heavily influence energy markets and inflation expectations.
3. Central Bank Policy: Inflation data and comments from major central banks, especially the Federal Reserve, could significantly impact currencies, equities, gold, and bonds.
4. Oil Market Volatility: Despite recent declines, crude oil remains highly sensitive to geopolitical developments and supply disruptions.
5. Chinese Regulatory Measures: Further restrictions on capital flows or overseas investing could impact Asian equities and broader investor sentiment.

Market Outlook: Optimism Returns, but Risks Remain​

Global markets are beginning to price in the possibility of a more stable geopolitical environment after months of uncertainty.

Lower oil prices, improving risk sentiment, and hopes for easing inflation have created a supportive backdrop for equities and other risk assets. However, traders should remain cautious as negotiations remain ongoing and geopolitical developments can shift rapidly.

At the same time, central bank policy, inflation trends, and regulatory risks, particularly from China, continue to create an environment where volatility may remain elevated across asset classes.

For traders, maintaining flexibility and closely monitoring macroeconomic developments will remain essential as markets navigate one of the most complex global environments seen in recent years.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

 

[HFM.]

Date: 26th May 2026.

Oil Surges on US-Iran Conflict: How Stocks, Dollar, and Global Markets React.

Global Markets React to Rising Middle East Tensions​

Global financial markets turned volatile after renewed US military strikes in southern Iran and ongoing uncertainty surrounding negotiations aimed at reopening the Strait of Hormuz. Investor sentiment shifted rapidly between optimism over a potential peace agreement and concern that escalating tensions could prolong disruptions to global energy supplies.

The result was a sharp rotation across oil, equities, currencies, bonds, and precious metals, with investors reassessing inflation risks and global growth expectations.

Oil Prices Become the Key Market Driver​

Oil markets reacted immediately to geopolitical developments, highlighting the sensitivity of global energy flows.

Brent crude initially fell sharply on expectations that US-Iran negotiations were progressing and that a potential agreement could ease supply risks. However, sentiment reversed after reports of renewed military activity, with oil prices rebounding toward higher levels.

The volatility reflects a key market concern: whether a diplomatic breakthrough can stabilise shipping through the Strait of Hormuz or whether disruptions to global supply chains will persist.

Energy traders remain focused on the risk that prolonged instability could keep oil prices elevated, adding pressure to global inflation.

Stock Markets Turn Mixed Amid Uncertainty​

Global equities reflected the same uncertainty.

In the United States, ^GSPC futures initially rose on hopes that lower oil prices could ease inflation and support economic growth. However, gains moderated as geopolitical risks resurfaced. Technology stocks showed relative resilience, supported by ongoing optimism around artificial intelligence and long-term growth in semiconductor demand.

In Asia, Japan's N225 declined as higher oil prices raised concerns for energy-import-dependent economies. Meanwhile, Hong Kong and South Korea showed more stability, supported by technology sector strength.

European equities also remained cautious as investors weighed slowing growth against persistent energy inflation risks.

The US Dollar Strengthens on Safe-Haven Demand​

The US dollar strengthens as investors move into safer assets amid geopolitical uncertainty.

Demand for dollar-denominated assets increased as markets reassessed risk, while expectations of persistent inflation supported the currency further.

Rising oil prices also reinforced expectations that the Federal Reserve may maintain higher interest rates for longer, supporting US Treasury yields and strengthening the dollar.

As a result, major currencies such as the euro and Japanese yen came under pressure.

Gold and Bonds Reflect Risk Sentiment Shifts​

Gold initially benefited from safe-haven flows but later lost momentum as the dollar strengthened and bond yields stabilised.

Meanwhile, Treasury markets reacted to changing inflation expectations, with yields fluctuating alongside oil prices.

The key driver remains energy inflation, which continues to shape central bank expectations globally.

Key Market Outlook​

Markets remain highly sensitive to developments in the Middle East.

The main focus going forward is whether diplomatic negotiations can stabilise energy flows through the Strait of Hormuz. Until clarity emerges, volatility across oil, stocks, currencies, and bonds is expected to remain elevated.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HFM Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
HFMarkets

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.