Global markets navigated persistent bond market pressure as US borrowing costs rose, despite Treasury efforts to ease rates. Wall Street edged higher, lifted by materials and crypto stocks, while European indices saw only marginal gains, capping a tough week.
Oil prices neared $100, extending weekly gains as geopolitical tensions flared, with reports of a collapsing Iran deal and restricted Hormuz. Iraq expressed intent to double oil output, while Trump’s "Economic D-Day" rhetoric on Iran further raised stakes, pushing Brent higher.
Cryptocurrencies surged, with Bitcoin hitting a four-month high, breaking $74k, and other crypto stocks gaining on market optimism. This rally was fueled by President Trump pushing for a "Clarity Act," while Kalshi traders anticipate Bitcoin holding current levels.
US service sector activity accelerated, beating forecasts and previous levels. However, bond markets remain a key concern, with Treasury buybacks failing to fully soothe investors. Watch for further developments in bond yields and geopolitical oil supply risks.