Financial Markets Daily Report05 March 2026
Geopolitical tensions in the Middle East persist, although yesterday brought some relative calm after the sharp volatility seen earlier in the week. Brent crude traded in a $80–85/barrel range before settling near $81, after President Trump said the US would protect shipping routes in the region. European natural gas prices fell back below €50/MWh. Equity markets continued to slide in Asia but recovered in the US and Europe, while the dollar stabilized around 1.16 against the euro.
Sovereign bond markets were mixed as investors continued to assess the inflationary implications of the conflict. Euro area yields edged lower after the sharp increases seen in previous sessions, while US Treasury yields moved higher, supported by strong services activity data and firmer labour market signals.
Gold rebounded by 1%, while most currencies traded broadly steady. Looking ahead, investor attention will remain on developments in the Middle East, with markets also positioning ahead of US labour market data due tomorrow.