Key facts
- Dow Jones Futures indicate a decline.
- Oil prices are increasing.
- A new target date for Hormuz has been set by Trump.
- Palo Alto and Marvell are early market movers.
- Global equities have pulled back from record highs due to a disappointing Broadcom forecast.
- The Israel-Lebanon ceasefire has helped cool the surge in crude oil prices.
- BoJ officials are considering a 25bp hike at the June meeting.
- The ISM services report showed the headline index rose to 54.5, with business activity improving and new orders jumping.
- Bitcoin's slide toward $64,000 adds to the broader risk-off tone.
Global equities have pulled back from record highs as a disappointing Broadcom forecast challenged the AI momentum that has carried markets. Asian equities snapped a four-day winning streak, with the MSCI regional index down 1.2%, and Korea's KOSPI fell 1%. Nasdaq 100 futures are down around 0.5% after Broadcom dropped sharply in after-hours trading. Europe is set for a softer open, with FTSE futures underperforming. The Israel-Lebanon ceasefire has helped cool the three-day surge in crude oil prices, with Brent slipping toward $97/bbl, but the agreement is dependent on a complete cessation of violence by Hezbollah. Broadcom's weaker revenue outlook has prompted a read-across into global chip names, with European semiconductor stocks such as ASML and STMicroelectronics expected to open lower. TSMC's CEO remains confident in multi-year growth. Japan is another major overnight development, with BoJ officials considering a 25bp hike at the June meeting, taking the policy rate to 1%. Market pricing for a June hike has moved from under 80% to above 90%. The Yen initially benefited but remains heavy just below 160 versus the Dollar. US data continues to complicate the Fed outlook; the Beige Book reported slight or moderate growth in ten of twelve districts, but also highlighted a widening split in household spending by income group. The ISM services report showed the headline index rose to 54.5, business activity improved to 57.7, and new orders jumped to 57.3, signalling that services demand remains solid. The employment index remains in contraction, while the already elevated prices index rose further. Bitcoin's slide toward $64,000 adds to the broader risk-off tone. In Europe, futures point to a modestly weaker start, with Euro STOXX 50 futures down slightly, DAX futures around flat, and FTSE futures lower. Partners Group warned that fundraising could slow in the second half of 2026 and into 2027.