Market developments
Equities: Global equity markets experienced significant volatility during the week as the ongoing conflict in the Middle East dominated investor sentiment. Equities closed out the short week in positive territory despite President Donald Trump’s prime time address, which pledged more aggressive action against Iran and offered no concrete plans to reopen the Strait of Hormuz. The uncertain nature around oil and supply disruption led to some strategist, like Morgan Stanley, to downgrade global equities to equal weight.
Fixed Income: Government bonds rallied across the globe at the start of the week as concerns that the Middle East conflict could derail global economic growth, reviving demand for previously battered sovereign debt. U.S. Treasurys advanced on March 31, with the 10‑year yield easing after The Wall Street Journal reported that Trump told aides he is willing to end the military campaign against Iran. Even so, the worst selloff in Treasurys since last April’s tariff-driven turmoil has intensified strains across financial markets, leaving bonds unable to provide their usual refuge as a potential Hormuz blockade triggered one of the largest oil shocks on record.
Commodities: Commodity markets were dominated by surging oil prices throughout the week, with Brent crude briefly falling below $100 a barrel on April 1 as hopes grew that the war may be nearing a conclusion. However, oil prices shot higher the following day, with West Texas Intermediate jumping 10% to more than $110 a barrel after Trump’s prime time address pledged more aggressive action against Iran.