Iran regained control of the Strait of Hormuz over the weekend, escalating tensions in the region. The US seized a ship, and Tehran fired on vessels, deepening the global energy crisis. These developments threaten oil supply stability, with prices likely to remain volatile amid ongoing geopolitical conflicts in the Middle East.
China may allow a record 9% yuan rally this year to boost confidence and support exports, says Stephen Jen of Eurizon SLJ Capital. The move aims to strengthen the currency amid economic recovery efforts, potentially improving purchasing power for Chinese companies abroad. The yuan's appreciation could influence global trade and capital flows in 2026.
Italy aims to keep its budget deficit below 3% of GDP in 2026, despite a downward growth forecast caused by the Iran war. The government remains committed to meeting EU fiscal rules, even as economic growth slows. The country’s efforts reflect ongoing fiscal discipline amid geopolitical tensions impacting economic prospects.
Fitch Ratings predicts Mozambique may restructure its debt before securing a new IMF deal. The agency highlights the likelihood of a debt restructuring as a key step in the country's economic recovery process, though no specific dates or amounts have been disclosed. This development signals ongoing financial challenges for Mozambique amid its efforts to stabilize its economy.
Cleveland-Cliffs CEO says the company is no longer in a rush to finalize a deal with POSCO, citing rising US steel prices and strong auto industry demand. The shift reflects improved market conditions, giving Cleveland-Cliffs more leverage and flexibility in negotiations, potentially delaying the deal’s closure until market dynamics stabilize further.
Evercore ISI added Arista Networks and IBM to its tactical outperform list ahead of their Q1 earnings reports. IBM is set to report on April 22 with expectations of $15.6 billion in revenue and $1.81 EPS, while Arista reports on May 5 with estimates of $2.61 billion revenue and $0.81 EPS. The firm anticipates moderate upside for both companies.
BNP Paribas CIO Ecaterina Bigos highlighted that oil prices are expected to stabilize between $80 and $90 by mid-summer amid ongoing volatility and geopolitical uncertainty. She emphasized the long-term growth potential in sectors like technology, driven by AI-related investments, which have experienced rerating and are projected to maintain momentum through the end of 2026.
