Following the abandonment of a ceasefire, military exchanges between the U.S. and Iran have intensified, causing significant market reactions. Global equities are experiencing renewed selling pressure, with notable declines in Asian markets and a drop in U.S. futures after the Dow fell over 400 points.
Bond yields are also rising, with the U.S. 10-year Treasury yield reaching levels not seen since January 2025. Oil prices have surged, with West Texas Intermediate futures surpassing $90 a barrel and Brent crude exceeding $95. The U.S. military's recent strikes against Iran and Tehran's retaliatory actions have heightened concerns among investors.
Additionally, tensions at the G20 meeting, particularly China's dissent regarding trade issues, further complicate the economic landscape. In the corporate sector, Volkswagen faces potential removal from the Euro Stoxx 50 index due to a nearly 30% decline in its shares this year, while Nokia's stock has surged, indicating a shift in market dynamics.
Overall, these developments underscore the interconnectedness of geopolitical events and market performance, prompting investors to remain vigilant