Episode Details

Global markets are navigating a sharp inflection point as the Middle East conflict forces a recalibration of growth and inflation expectations. Oil prices remain elevated near $96 a barrel, creating ripple effects through energy-dependent economies and corporate profit margins. Asian markets closed with Japan's Nikkei hitting record levels amid hopes for a US-Iran agreement that could ease tensions. The first quarter earnings season is underway with a strong start—88% of S&P 500 companies that have reported have beaten expectations—but expectations are remarkably high, with the tech sector alone expected to deliver 45% earnings growth for Q1. The Federal Reserve and other central banks remain on hold, watching and waiting as they assess whether energy-driven inflation proves temporary or persistent. Europe faces particular headwinds with growth forecasts revised down to 1.1% for the eurozone. This briefing covers the earnings calendar ahead (Tesla today, Microsoft, Alphabet, Amazon, and Meta next week), bond market signals pointing to elevated policy risk, and what energy markets are telling us about the global economy's trajectory.