Overnight Headlines 2nd April 2026

Multi-Asset Morning Pack – 2 April 2026

Top Overnight Headlines

1. Oil jumps as Trump signals continued strikes on Iran

→ No clear de-escalation path; supply fears back in focus

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2. Asian markets fall as Trump warns Iran war will continue

→ Risk sentiment deteriorates across Asia and US futures

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3. Markets reverse as hopes for diplomatic off-ramp fade

→ Investors reposition back to defensive stance

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4. US readies new pharmaceutical tariffs

→ Potential escalation in trade tensions

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5. US Treasury to meet regulators on private credit risks

→ Focus on leverage, liquidity, and systemic exposure

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6. Amazon in talks to buy Globalstar in ~$9bn deal

→ Strategic push vs Starlink in satellite space

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Macro / Overnight Narrative

Trump’s Iran address has reset the tone back to risk-off.

Markets had leaned toward a possible off-ramp — instead, the message was:

• campaign continues
• escalation remains on the table

That has triggered a classic energy-driven risk shock:

• Oil sharply higher
• Equities reversing lower
• Yields rising (not falling) → inflation risk dominant
• USD firmer

Price Action Snapshot

US Close (1 April)

• S&P 500: 6,575 (+0.72%)
• Nasdaq: +1.16%
• Dow: +0.48%
• VIX: 24.5 (-2.8%)

US Futures (Now)

• S&P fut: -1.22%
• Nasdaq fut: -1.55%
• Dow fut: -1.04%

Asia

• Nikkei: -2.32%
• ASX: -1.04%
• Nifty: -2.11%
• Kospi: **~ -4%**

Rates (USTs)

• 2Y: 3.86% (+5bp)
• 5Y: 4.01% (+6bp)
• 10Y: 4.38% (+6bp)
• 30Y: 4.95% (+5bp)

→ Key signal: bonds selling off despite equities down

FX

• EUR/USD: 1.153 (-0.5%)
• GBP/USD: 1.323 (-0.6%)
• USD/JPY: 159.4 (+0.4%)
• AUD/USD: -0.7%
• NZD/USD: -0.8%
• USD/KRW: +0.6%

→ USD stronger vs risk FX

Commodities (Key Driver)

• WTI: $105.40 (+5.3%)
• Brent: $107.77 (+6.5%)
• RBOB: +5.4%
• Heating Oil: +8.5%

→ Energy complex leading everything

Trader’s Take

This is not a clean risk-off — it’s stagflationary:

• Oil ↑
• Yields ↑
• Equities ↓

That combination matters.

The key shift overnight:escalation narrative

Everything now hinges on:

• duration of conflict
• risk to supply (Hormuz implicitly in play)

What Matters Next

• Can Brent hold > $107–108
• Do yields continue higher despite equities falling
• Europe cash open reaction
• Any shift in tone from US / Iran (headline-driven tape)
• Details on drug tariffs