US Dollar Surges, Equities Weighed Down by Higher Yields and Energy Prices

The US dollar has surged to levels not seen since May 2025, driven by higher yields and energy prices. This has weighed on global equities, with European bourses experiencing significant pressure.

The US government has told France and Germany to release emergency diesel stocks or face a possible export ban, with the US pushing for the release of 120 million barrels of diesel in the next six months.

Fed speakers are scheduled to address markets today, including BoE's Mann & Pill, ECB’s Lagarde & Schnabel, Fed’s Barkin, Collins, Schmid, Waller, Jefferson, Bowman, Cook, Williams & Logan, and BoC's Rogers. Earnings from Accenture, McCormick, and Nike will also be released.

The US-Iran negotiations have stalled, with a US official stating that Secretary of State Rubio demanded Iran's UN delegation immediately leave the country. This has contributed to higher energy prices, with Brent reaching $100/bbl.