Amid escalating conflicts in the Middle East, global financial market volatility has intensified. On Friday (March 6th), U.S. and European stock futures rose, and Asian stock markets also trimmed early losses, with markets generally attributing this to a slight decline in international oil prices.
There are reports that the U.S. government is evaluating the possibility of intervening in the crude oil futures market to curb recent rapid oil price rises driven by war risks. Market participants noted that if Washington influences energy prices through financial market means, it would be the first time the U.S. is attempting to stabilize oil prices through the derivatives market rather than spot supply.
Meanwhile, U.S. President Donald Trump expressed his desire to have a say in deciding Iran's next leader, indicating that the U.S. may further increase its influence over Iran's political landscape.
Geopolitical risks have swiftly altered the trajectory of global assets. International oil prices are heading towards the largest weekly gain since the Russia-Ukraine war in 2022. The energy shock is boosting inflation expectations and prompting markets to reassess the monetary policy paths of major central banks, with global bond yields generally rising.
Under the shock of risk sentiment, Asian stock markets are heading towards the largest weekly decline in nearly six years. Analysts pointed out that investors are currently focusing primarily on the duration of the war and energy supply risks, leading to a notable drop in market attention to the upcoming U.S. non-farm employment data. The market expects about 59,000 new jobs in the U.S. in February, down from 130,000 in January; the unemployment rate is expected to remain at 4.3%. Investors will still closely watch the report to assess if there are new signs of a slowdown in the labor market.
