WTI Oil Plunges 17% as Wall Street Futures Jump

Posted on April 8, 2026 by Ignacio Teson

Crude prices plunged while financial assets rebounded after the U.S. president announced a ceasefire agreement with Iran, easing market concerns about disruptions to global energy flows.

Crude Oil crashes as Traders React to the ceasefire.

Oil prices fell by as much as 17% and Wall Street futures jumped up to 3.3% after Donald Trump, president of the United States, said he had agreed to a ceasefire with Iran.

The May futures contract for West Texas Intermediate (WTI) crude dropped $12.04, or 16.7%, to $94.07 per barrel. Meanwhile, Brent crude had closed the session down 5.8% at $103.42 per barrel.

The announcement came shortly before the deadline Trump had set for Iran to reopen the Strait of Hormuz, a critical shipping route through which roughly 20% of the world’s oil supply passes.

Trump said the agreement was conditional on Iran suspending its blockade of oil and gas shipments through the strait, which typically handles around one-fifth of global oil flows.

“Based on the conversations held with Prime Minister Shehbaz Sharif (…) in which they asked me to stop the destructive force that was going to be sent tonight to Iran, and provided that the Islamic Republic of Iran accepts the FULL, IMMEDIATE and SAFE reopening of the Strait of Hormuz, I agree to suspend the bombings and attacks against Iran for a period of two weeks,” Trump wrote on social media.

“This will be a reciprocal CEASEFIRE,” he added.

EU Growth Slumps to 9-Month Low

Posted on April 7, 2026 by Ignacio Teson

The sharp drop in the services sector dragged down overall activity across the European bloc. Demand weakened, while input prices recorded their largest increase in more than three years.

The war in the Middle East has already begun to take a toll on the economy of the European Union (EU), which recorded its weakest expansion in nine months. The data, covering the private sector in the Eurozone for March, pointed to a significantly weakened services sector, along with a decline in new orders and a sharp rise in input prices.

The Eurozone Composite PMI Output Index compiled by S&P Global fell to 50.7 last month from 51.9 in February, marking the slowest growth rate since June 2025. The reading remained above the 50 threshold that separates expansion from contraction, but came in well below the historical average of 52.4.

According to Chris Williamson, chief business economist at S&P Global, the figure “indicates that the eurozone economy has already been severely affected by the war in the Middle East.”

He added: “The encouraging signs of growth seen at the start of the year have faded due to soaring energy prices, supply chain disruptions, volatility in financial markets, and a renewed decline in demand.”

Williamson warned that “there are clear risks of economic contraction in the second quarter if the conflict is not resolved quickly. Even if it is, we are likely to see negative repercussions in the energy market that could last for several months.” He also said the situation “raises the unwanted specter of stagflation—or possibly something worse—in the short term.”

The S&P Global report noted that the services sector was primarily responsible for the slowdown in overall expansion in March, as activity levels barely increased during the latest survey period, registering a reading of 50.2. Meanwhile, manufacturing output growth remained solid.

Fewer orders and rising inflation

After a sustained period of improving demand, March saw a decline in total new orders across the eurozone, driven by a drop in orders received by services companies.

New export orders, which include trade within the eurozone, also declined in March, although the pace of contraction was moderate. By contrast, manufacturing export volumes nearly stabilized, highlighting a sharper slowdown in demand from foreign clients for services—the steepest in six months.

Employment losses also accelerated, reaching the fastest pace in thirteen months. This was mainly due to a sharper drop in manufacturing employment, although the decline remained marginal. The uptick in job losses coincided with weakening business expectations, as optimism fell in March for the first time since December 2025 amid a broad decline in confidence.

Input cost inflation also surged, reaching its highest level in just over three years. The manufacturing sector experienced a sharp rise in price pressures, with its purchasing price index jumping nearly eleven points from February—an unprecedented monthly increase.

Services companies also faced sharply rising costs, and March recorded the strongest overall increase in eurozone output prices for goods and services since February 2024.

France Moves Gold Reserves from the U.S. to the EU

Posted on April 7, 2026 by Ignacio Teson

Instead of refining and transporting the older gold from the United States, the institution decided to sell it and purchase new bullion that complies with the international standards currently used in the European market.

The Bank of France sold part of its gold reserves that had been stored at the Federal Reserve in New York. Rather than transporting the metal, it bought an equivalent amount in Europe, allowing it to generate a profit of €12.8 billion.

France’s gold reserves currently total about 2,437 tonnes, considered the fourth-largest in the world, and are now entirely held in Paris. Of this total, around 134 tonnes correspond to old bullion bars and coins that the Bank of France plans to modernize so they meet current standards by 2028.

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How the operation to move the gold from the U.S. to Europe worked

Instead of refining and transporting the older gold from the United States, the institution opted to sell it and acquire new bars that meet the international standards currently used in the European market.

The transaction was carried out through 26 separate operations between July 2025 and early 2026.

The bank sold 129 tonnes of gold—around 5% of France’s total gold reserves—which represented the last holdings that remained in New York. All French gold reserves are now located in Paris.

France has stated that it wants all of its reserves to be held exclusively in its capital. The decision strengthens the autonomy of the French financial system at a time of rising tensions and shifting alliances within the Western world.

SpaceX IPO: New Details Emerge Ahead of June

Posted on April 7, 2026 by Ignacio Teson

SpaceX revealed new details about its long-awaited initial public offering during a meeting held Monday night with its team of bankers, informing them that it intends to allocate a large portion of the shares to retail investors.

SpaceX is shifted some of its Bitcoin before the IPO.

In that regard, the company will host about 1,500 of them at an event scheduled for June, after the IPO roadshow begins, according to two people familiar with the matter.

“The retail market will be a fundamental part of this and will have a larger weight than in any IPO in history,” Chief Financial Officer Bret Johnsen said during the virtual meeting. Johnsen added that the strong retail component is intentional, noting that “these are people who have supported us—and Elon Musk—incredibly for a long time, and we want to make sure that is recognized.”

The long-awaited market debut for Elon Musk

SpaceX is rewriting the playbook for initial public offerings with an unusually large share of retail investors in the deal, according to a report by Reuters last month.

The meeting brought together the full group of banks for the first time as part of the process for what is expected to become the largest IPO in history. The rocket manufacturer aims to raise about $75 billion, which could value SpaceX at up to $1.75 trillion.

The company led by Elon Musk plans to begin its roadshow during the week of June 8, when executives and bankers will present the IPO to investors, the sources said. Around 125 financial analysts from the 21 banks participating in the deal are scheduled to meet with the company the day before, they added.

The European Central Bank to Set Policy Based on the War

Posted on April 6, 2026 by Ignacio Teson

Through a member of its Governing Council, the institution confirmed that energy pressures stemming from the war could lead to a more restrictive stance.

The conflict in the Middle East continues to ripple through the global economy. Yannis Stournaras, a member of the Governing Council of the European Central Bank and governor of the Bank of Greece, said Monday that the appropriate monetary policy for the euro area will depend on the scale and nature of energy supply disruptions caused by the war involving the United States, Iran and Israel.

Speaking at the annual shareholders’ meeting of the Bank of Greece in Athens, Stournaras noted that if the surge in energy prices proves temporary, the need for monetary tightening would likely remain limited.

However, he added that a more restrictive policy stance could become necessary if higher energy prices prove stronger and more persistent, particularly if they begin to affect medium-term inflation expectations and wage dynamics across the euro area.

Signs the war could be nearing an end?

For more than a week, Donald Trump has delivered mixed messages about the conflict. At times, he has suggested that negotiations with Tehran are advancing toward a ceasefire, while at other moments he has hinted at further military action in response to the closure of the Strait of Hormuz.

The U.S. president has recently intensified pressure on Iran, issuing an ultimatum demanding that the strategic waterway be reopened before Tuesday. Tehran has rejected the demand, raising the prospect of new attacks and additional measures targeting energy resources.

Global Inflation: 34% of Companies Passing Costs to Consumers

Posted on April 6, 2026 by Ignacio Teson

A private report shows that more companies are increasingly passing the impact of Donald Trump’s tariffs on to prices, amid regulatory uncertainty and falling sales.

Trade policies promoted by Donald Trump are beginning to hit consumers more directly. According to a survey by KPMG, a growing number of large companies have already passed most of those costs on to final prices and expect further increases in the coming months.

The survey, conducted among 300 senior executives at companies with revenue above $1 billion, shows that 34% of firms are already transferring most tariff costs to consumers. That figure marks a sharp increase from 21% in September 2025 and 13% in May of the same year, shortly after the tougher trade policy was announced.

In addition, more than half of respondents (55%) expect price increases of at least 15% over the next six months, as cost pressures remain elevated.

Price increases beyond tariffs

The report also warns that cost pass-through is not limited to products directly affected by trade measures. Some 37% of companies said they raised prices on goods not subject to tariffs, while 19% implemented increases that exceeded the direct impact of higher import costs.

“The burden of tariffs is now falling directly on consumers. While companies initially absorbed the hit in their margins, most are now reconfiguring pricing strategies for a world of persistent cost pressures,” said Brian Higgins, head of industrial manufacturing at KPMG in the United States.

Falling sales and weaker activity

Tighter trade policy is also beginning to show up in business activity. According to the survey, 82% of companies reported a decline in export sales, while 61% said domestic sales in the United States had fallen.

These figures reinforce concerns about the economic impact of trade tensions, particularly as rising prices risk weighing on consumer demand.

The outlook has become even more uncertain following a recent ruling by the Supreme Court of the United States that declared some of Trump’s tariffs illegal. However, the former president has signaled he will seek to reintroduce similar measures under different legal frameworks. After the ruling, the government moved ahead with a global 10% tariff that can only remain in place for up to 150 days under current regulations.

Uncertainty remains over the scope of future measures. Sectors such as retail and consumer goods appear particularly difficult to target, given complex production chains and the wide range of products involved.

JPMorgan Chase Turns More Political, Calls for a Stronger U.S. Military

Posted on April 6, 2026 by Ignacio Teson

The chief executive of JPMorgan Chase, Jamie Dimon, signaled a growing political stance by arguing that the United States must “strengthen itself” to maintain both its military and economic power.

The comments came alongside new financing initiatives announced by the bank, including plans to invest more than $1 trillion in sectors linked to national security and economic resilience.

“With the right policies and decisive actions, the United States will maintain the strongest military and economy, and will continue to be the bastion of freedom and the arsenal of democracy. But no country has a divine right to success,” Dimon wrote in a shareholder letter reported by Bloomberg L.P..

Major investment initiatives

Last week, JPMorgan introduced the “American Dream Initiative,” aimed at expanding economic opportunities across local communities in the United States.

The program follows the “Security and Resilience Initiative,” announced in October, through which the bank committed to investing $1.5 trillion over the next decade in sectors intended to strengthen U.S. economic resilience and national security.

These moves reflect Dimon’s long-standing political interest, which has become more explicit in recent years.

“We have a responsibility to contribute to shaping the right policies—not just for our company, but for the country and the world. Many companies will only thrive if their countries thrive,” Dimon wrote.

“Critical issues facing the United States and the world”

Dimon’s 48-page letter includes a section titled “Critical Issues Facing the United States and the World,” the longest part of the document. In it, he calls for a major free-trade agreement with Europe, combined with economic and military reforms.

He also warned about rising geopolitical risks, particularly in light of the ongoing conflict in the Middle East.

Among other concerns, Dimon highlighted potential risks in the private credit market, noting that emerging credit losses could signal broader vulnerabilities in the financial system.

He added that private equity investments now remain in portfolios for an average of seven years, nearly double the historical norm, and cautioned that markets have experienced largely bullish conditions since the 2008 financial crisis, raising questions about how investors might react during a prolonged downturn.

Dimon also stressed that cities must remain competitive and predicted that the adoption of artificial intelligence could spread far faster than previous technological revolutions such as electricity or the internet.

“We are not going to ignore reality,” he said.

Bitcoin Jumps More Than 3%, Nears $70,000 as Markets Watch Iran

Posted on April 6, 2026 by Ignacio Teson

The cryptocurrency market is trading higher as investors await the final hours of the ultimatum given by Donald Trump to Iran to reopen the strategic Strait of Hormuz. In this context, Bitcoin rose and approached the $69,000 mark, according to data from Binance.

Bitcoin is making gradual progress upward after a bullish shift this week.

The world’s largest cryptocurrency climbed 3.3% to $69,646. Meanwhile, Ethereum followed the trend, gaining 4.2% to $2,144.86. Among major altcoins, XRP advanced 2.6%, while BNB rose 2.4%.

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Cryptocurrencies await signals from the war

The crypto market is trading in positive territory as investors closely monitor developments surrounding the conflict involving Iran, with the deadline approaching for Tehran to reopen the Strait of Hormuz — a route through which roughly one-fifth of the world’s oil supply flows.

Trump warned that if an agreement with Iran is not reached before Tuesday at 8:00 p.m. Washington time, the United States could launch attacks targeting Iranian energy facilities, bridges, and other infrastructure.

However, the U.S. president said on Monday that he believes Iran is negotiating “in good faith” and that both sides would prefer to reach an agreement before the deadline expires.

According to Axios, the United States, Iran, and several regional mediators — including Pakistan — are discussing the terms of a 45-day ceasefire proposal that could pave the way for a broader end to the war launched by the United States and Israel on February 28.

Earlier, Trump told reporters that the peace proposal presented by Tehran was “significant,” though he added that it was “not good enough” in its current form.

United States Bond Yields Rise After Strong Employment Data

Posted on April 3, 2026 by Ignacio Teson

Yields on U.S. Treasury bonds moved higher on Friday after stronger-than-expected labor market data reinforced expectations that the Federal Reserve is unlikely to adjust interest rates in the near term.

The surge in bond yields continues today.

The benchmark 10-year Treasury yield rose 3.3 basis points to 4.347%. Despite the daily increase, yields fell 9.4 basis points over the week, marking the largest weekly decline since the week of February 23.

Meanwhile, the two-year Treasury yield, which closely reflects interest-rate expectations, climbed 5.2 basis points to 3.85%, though it still declined 6 basis points for the week.

In longer maturities, the 30-year Treasury yield increased 2.4 basis points to 4.914%, while posting a 7-basis-point weekly drop.

Labor market volatility and Fed rate outlook

Earlier in the day, data showed that the United States added 178,000 nonfarm jobs in March, following a downwardly revised loss of 133,000 jobs in February. At the same time, the unemployment rate edged down from 4.4% to 4.3%.

However, analysts said the report was not as strong as it initially appeared. “The bond market reaction has moderated somewhat. There were further downward revisions and there is considerable volatility in these data,” said Zachary Griffiths of CreditSights in Charlotte, North Carolina.

The figures are unlikely to significantly alter the outlook for monetary policy, as the economic effects of supply disruptions stemming from the Middle East conflict have yet to fully appear in the data.

After the jobs report, futures tied to U.S. interest rates priced in only one rate cut this year, compared with seven cuts projected late Thursday and as many as 55 before the Middle East conflict escalated.

Economists at JPMorgan Chase warned that negative monthly employment readings may become more frequent. While March was likely too early to capture the full impact of the conflict in the Middle East, some analysts said its effects could start appearing in the April jobs report.

SpaceX Targets $2 Trillion Valuation in Planned IPO

Posted on April 3, 2026 by Ignacio Teson

SpaceX has reportedly filed confidential paperwork with the U.S. Securities and Exchange Commission as part of preparations for a potential initial public offering, with a valuation that could reach $2 trillion.

SpaceX's value is massively increasing ahead of its public offering. — SpaceX’s value is massively increasing ahead of its public offering.

Discussions are still ongoing, and the details of the listing could change, according to reports. The company is aiming to make its market debut sometime this year.

For years, Elon Musk resisted taking SpaceX public, arguing that pressure from short-term shareholders could interfere with his long-term vision of colonizing Mars. However, the success of the Starship program and the dominance of the Starlink network have pushed the company’s valuation to levels where an IPO is increasingly seen as the logical next step.

Shares of space-sector companies rallied on Wall Street on Thursday following the reports. Intuitive Machines jumped 17%, while AST SpaceMobile gained nearly 9%.

Meanwhile, Virgin Galactic also advanced, rising about 5% during the session.

U.S. Judge Upholds Block on Subpoenas Targeting Jerome Powell

A U.S. judge on Friday reaffirmed his decision to block subpoenas issued as part of a criminal investigation into Jerome Powell, chair of the Federal Reserve, a ruling that could further delay efforts by Donald Trump to install a more compliant leader at the central bank.

U.S. District Judge James Boasberg rejected a request from the U.S. Department of Justice to reconsider his earlier ruling, which had effectively halted the criminal investigation involving Powell.

In a March 13 decision, Boasberg determined that subpoenas issued in January to the Federal Reserve Board of Governors were improperly motivated and aimed at pressuring Powell to comply with Trump’s demands for rapid interest-rate cuts or to step down.

The subpoenas—issued by Washington D.C.’s top federal prosecutor, Jeanine Pirro, a close Trump ally—sought information about cost overruns tied to renovations at the Fed’s headquarters, as well as Powell’s congressional testimony last year regarding the project.

By refusing to reconsider the ruling, the court effectively keeps the subpoenas suspended while the case moves toward a potential appeal. Legal experts say the process could extend the standoff between the White House and the central bank, adding another layer of uncertainty around the leadership of the Federal Reserve at a time when interest-rate policy remains a key issue for financial markets.