14 April 2026
US stocks closed higher on Monday amid renewed hopes of de-escalation of geopolitical tensions. The earnings season began. The S&P 500 gained 1.0%.
US Treasuries rebounded from intraday lows, with 10-year yields ending down 3bp at 4.29%.
European stocks closed lower on Monday but trimmed earlier losses as geopolitical uncertainty in the Middle East lingered. The Euro Stoxx 50 lost 0.4%. The German DAX and the French CAC both fell 0.3%. In the UK, the FTSE 100 was down 0.2%.
European government bonds fell. 10-year German bund yields rose 3bp to 3.09% and 10-year French bond yields rose 4bp at 3.75%. In the UK, 10-year gilt yields climbed 4bp to 4.87%.
Asian stock markets mostly fell on Monday as crude oil prices rebounded on renewed concerns over the Strait of Hormuz traffic. Japan’s Nikkei 225 fell 0.7% and Korea’s Kospi lost 0.9%. Elsewhere, Hong Kong’s Hang Seng fell 0.9% while China’s Shanghai Composite ended little changed (+0.1%). India’s Sensex was down 0.9%.
Crude oil prices rose on Monday but pared earlier gains. WTI for May delivery settled 2.6% higher at USD99.1 a barrel.
In India, CPI inflation rose to 3.4% yoy in March, from 3.2% yoy in February, driven by higher food and fuel prices, but the oil price pass-through remained limited with stable core inflation.
In the US, the NFIB Index of Small Business Optimism reading should begin to reflect worries about the Middle East conflict, with small firms likely to be hit harder by rising prices than large firms. PPI is likely to rise by 1.1% mom in March, from 0.7% mom in February, as recent outturns imply inflationary pressure was showing even before the oil price surge, and is likely to move higher from here.
In China, tech exports likely continued to show strength, leaving a sizeable trade surplus despite potentially higher imported commodity prices.
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