Good morning and welcome to Markets Desk, your midday read on what's moving and why.
All eyes are on Washington this afternoon as the Federal Reserve prepares to deliver its interest rate decision under new leadership. Markets in Europe opened cautiously and Indian equities held modest gains, with investors in both regions unwilling to take on risk ahead of a policy statement that could reset expectations on the pace and depth of future cuts. The dollar is already firming, with traders piling into bullish bets on the greenback as US exceptionalism reasserts itself — the logic being that a resilient American economy gives the Fed every reason to stay patient, even with oil prices softer on the session.
Speaking of oil, the Iran situation is adding a layer of complexity to that calculus. At least three Iranian tankers carrying nearly five million barrels of crude have exited the US Navy blockade for the first time in months, moving through the Strait of Hormuz as shipowners watch in what one observer called wary disbelief. The interim peace framework remains fragile, and the market is treating this development as cautiously constructive rather than a clean resolution.
Meanwhile, BMW is trimming its fiscal two thousand twenty six outlook, citing deteriorating conditions in China, ongoing disruption from Middle East conflict, and a one-time structural charge tied to an accelerated efficiency program. It is a reminder that European industrials remain caught between slowing Asian demand and a geopolitical backdrop that refuses to stabilize.
That's the tape. Markets Desk, signing off the floor.
