Friday: Oil Falls & Stocks Rise Again as Deal Signed

The signing of a deal to reopen the Strait of Hormuz sent Brent crude down to $78.90 a barrel and WTI to $75.80, instantly lifting equity markets. The S&P 500 and Nasdaq gained 1 % and 1.6 % respectively, while the 10‑year U.S. Treasury yield slipped 2.9 basis points. In Europe, the Bank of England kept its policy rate unchanged, signalling patience but hinting at possible easing later in the year. Meanwhile, New Zealand’s March‑quarter GDP was revised up to a 1 % annualised pace, driven by services and tourism despite a construction slowdown.

Across Asia, central banks continued tightening. Bank Indonesia raised its benchmark to 5.75 % and is expected to push toward 6 % to preserve attractive yields for foreign investors after a shift in Fed guidance. The Philippine central bank lifted its rate to 4.75 % and projected two more 25‑basis‑point hikes before year‑end, citing inflation that will likely stay above target until 2027. These moves reflect a broader regional effort to curb imported inflation and stabilize currencies amid volatile oil prices and global monetary tightening.

In India, a widening balance‑of‑payments gap prompted the RBI to deploy unconventional tools. It offered higher interest on foreign‑currency deposits for overseas Indians, reduced hedging costs for public‑sector borrowings, and removed withholding tax on foreign holdings of Indian sovereign bonds, aiming to draw $50‑80 billion of capital. Early market reaction shows modest yield declines and a steadier rupee, giving the RBI room to focus on its inflation mandate. The central bank now expects two incremental 25‑basis‑point rate hikes, maintaining a tight stance while the currency stabilises.