
Brent crude rose around 2% to $96 per barrel, reaching a six-week high after new U.S. strikes on Iran and Houthi attacks on oil tankers increased concerns over supply routes through the Strait of Hormuz and the Red Sea. Oil remains the main risk to equities because a further rise could increase business costs, weaken growth expectations, and keep interest rates elevated.
U.S. stock futures edged slightly higher after Wednesday’s weaker close, with S&P 500, Nasdaq-100, and Dow futures gaining between 0.1% and 0.3%. The modest rise came despite declines in Alphabet and Tesla after their quarterly results, indicating that broader risk sentiment remains supported but fragile.
Alphabet raised its expected 2026 capital expenditure by $15 billion to between $195 billion and $205 billion as demand for its AI and cloud services remained strong. However, its shares fell in after-hours trading as investors focused on the cost of that spending and weaker free cash flow. Tesla also declined after earnings missed expectations and higher investment weighed on cash generation.
In Asia, South Korea’s KOSPI rose more than 3%, Japan’s Nikkei gained around 1%, and the broader MSCI Asia-Pacific index outside Japan advanced about 1%.
The next major scheduled catalyst is the European Central Bank’s decision. The ECB is expected to leave its deposit rate unchanged at 2.25%, but traders will closely monitor whether higher energy prices lead policymakers to signal another possible rate increase in September.
Risk Disclaimer: This material is provided for informational purposes only and does not constitute investment advice, financial guidance, or a recommendation to trade any financial instrument. CFDs are complex instruments and carry a high risk of losing money rapidly due to leverage.
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