Global markets are bracing for a third consecutive week of losses as drone attacks in the Gulf region led to the suspension of some refinery units in Kuwait, underscoring persistent instability. Despite efforts by the U.S. and Israel to downplay further threats to energy infrastructure, Brent crude rallied another 2% to $110 a barrel, highlighting ongoing supply fears.
The European Central Bank, which held interest rates stable yesterday, indicated its readiness to act if inflation pressures worsen. ECB Governing Council member Joachim Nagel stated that the central bank might need to hike rates in April if the inflation outlook deteriorates, signaling a hawkish stance amid elevated energy prices driven by the Mideast conflict. In contrast, European natural gas prices saw a slight reprieve, falling as much as 3% following statements aimed at dismissing fears of broader energy facility attacks.
In corporate news, Unilever Plc is reportedly in talks to merge its food business with McCormick & Co., according to Bloomberg sources, signaling a potential strategic overhaul for the consumer goods giant. Elsewhere in pharmaceuticals, Novartis AG has agreed to pay up to $3 billion for an experimental cancer drug from Synnovation Therapeutics, aiming to bolster its oncology pipeline.
Efforts to integrate global payment systems are also gaining traction. The European Union has proposed that Turkey join the Single European Payments Area (SEPA), while India is exploring instant payment integration with the bloc.
Global equities reflected the cautious sentiment. European stocks traded stable after recent volatility, but Japan’s Nikkei 225 plunged almost 3%. U.S. equity futures pointed to an average loss of 0.5% at the open.
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