The United Arab Emirates said it will leave OPEC, a surprise move that threatens to redraw alliances inside the oil-producing cartel at a time of heightened volatility in global energy markets.
The decision comes with Brent crude up 3% at $114 a barrel, as traders weigh the implications of another rupture inside the producer group alongside continuing disruption tied to the Gulf conflict. The UAE’s exit is likely to intensify questions about OPEC’s cohesion and future production strategy.
Investors are also focused on a pivotal day for monetary policy and corporate earnings. The Federal Reserve is due to announce its latest interest-rate decision, while in Mexico, Banxico is expected to deliver what may be its final cut in the current easing cycle.
On the corporate side, a slate of major U.S. technology companies is set to report, including Alphabet, Amazon, Meta, Microsoft and Qualcomm. The results are expected to test whether enthusiasm for AI and cloud spending can keep supporting equity valuations after a strong run in U.S. stocks.
In Europe, earnings from lenders and energy groups provided a brighter backdrop.
UBS reported revenue and profit above analyst expectations, sending the shares 5.9% higher in Zurich. Nordic lenders SEB and Swedbank also beat estimates, helped by stronger corporate lending activity, while Santander posted better-than-expected profit on robust loan income.
TotalEnergies raised its buyback program and dividend after reporting earnings that exceeded forecasts, underscoring how elevated oil prices are still supporting cash returns from the sector.
Separately, the long-awaited EU-Mercosur trade deal is set to enter into force on May 1, marking a major shift in trade relations between Europe and South America. The agreement is expected to lower tariffs and deepen commercial ties across agriculture, industry and services.
With Japan closed, mainland Chinese stocks rose 1% and Hong Kong gained 1.8%, helped by strength in technology and exporters. European equities slipped 0.5%, while U.S. futures were little changed as investors held back ahead of the Fed and Big Tech results.
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