Market Summary - March 5, 2026

The financial markets are currently reacting to escalating tensions in the Middle East, particularly involving the United States, Israel, and Iran. Here are the key highlights from today's market wrap:

Forex and Commodities

• EUR/USD: Trading at 1.16005, down 0.29%.
• Oil Prices: Brent and WTI oil prices have increased by 2%, with current prices at $83.29, up 0.97%.
• Gold: Gold prices are up 0.3%, currently at $5,157, while silver has decreased by 1.2% to $82.70.
• Natural Gas: Prices have risen by 1.7%.

US Indices

• US100: Down 0.45% at 25,025.2.
• US500: Down 0.4%.

Geopolitical Developments

Former President Donald Trump has rated the scale of military actions in the region as "15 out of 10." The US Senate has voted to maintain military power in Iran, rejecting a motion to limit Trump's authority by a vote of 53 to 47. The House of Representatives is expected to vote on this matter today.

In response to the conflict, Iran has reportedly launched missiles towards Israel, prompting significant population movements, with 100,000 people fleeing Tehran. Qatar Airways is organizing evacuation flights to Europe, starting with a flight from Riyadh to Frankfurt.

Market Reactions

US index contracts are experiencing declines after a brief period of relief. The dollar has regained strength, with the dollar index up 0.3%, while antipodean currencies like the AUD and NZD are facing losses. The EUR/USD pair is testing support at 1.1600.

Asian stock markets have shown a strong rebound, particularly the South Korean KOSPI, which is up approximately 10%. The Nikkei 225 has also gained around 1.9%, while the Chinese HSCEI has returned to declines after an initial rebound.

Corporate News

Broadcom shares surged by 4.7% in after-hours trading following better-than-expected results, with revenue reaching $19.31 billion. The company reported a 106% increase in revenue from the AI sector and anticipates over $100 billion in revenue from AI chips by 2027.

In a notable development, Venezuela's state mining company Minerven has agreed to sell up to 1,000 kg of unrefined gold to Trafigura for the US market, facilitated by US Secretary of the Interior Doug Burgum during his visit to Venezuela.

China's Economic Outlook

China has set a GDP growth target for 2026 between 4.5% and 5%, with a budget deficit projected at 4% of GDP and an inflation target of 2%.

Central Bank Commentary

European Central Bank official Rehn emphasized the need for a measured approach to geopolitical shocks, advising against premature decisions regarding interest rates.