This content was published on
July 8, 2026 - 11:10
4 minutes
(Bloomberg) — Stocks fell, bond yields spiked and oil rallied after President Donald Trump thrust geopolitical risks back into focus by declaring the ceasefire between the US and Iran to be over.S&P 500 futures slid 1%. Brent advanced 6.3% toward $79 a barrel. Trump declared the ceasefire “a waste of time” after the US launched strikes against Iran and revoked a waiver that allowed the sale of Iranian oil. The actions were taken in response to recent attacks on ships transiting the Strait of Hormuz.Trump’s declaration “marks the most serious rupture yet in an agreement that has been fraying for weeks,” said Violeta Todorova, senior research analyst at Leverage Shares. “Markets had been treating the June memorandum of understanding as a durable de-escalation. That complacency now looks fragile.”Bonds tumbled in Europe as traders added to wagers that central banks will have little choice but to raise interest rates this year. The yield on 10-year gilts jumped 10 basis points to 4.95%, the highest level in nearly a month. Treasuries extended the previous session’s selloff, with two-year yields rising three basis points to 4.22%. The dollar edged 0.1% higher.In South Korea, the Kospi extended losses since last month’s high to 20%. This year’s best-performing major benchmark has been lashed by volatility amid a rotation in the AI trade, with investors shifting out of semiconductors in search of more attractive tech valuations. Alibaba Group Holding Ltd. jumped 12% in Hong Kong.“Overlapping negative news flow is pushing markets down now, and with no major earnings coming out in the next few days to change that trend, it seems there will be little respite for markets,” said Michael Field, chief equity strategist at Morningstar.What Bloomberg Strategists Say:“It takes a much larger move in oil to overwhelm other drivers of equity performance. The escalation in US-Iran tensions represents a downside risk, but without a much larger increase in commodity prices it is unlikely to have a material impact on equity markets.”— Skylar Montgomery Koning, macro strategist. For the full analysis, click here.Corporate News:UniCredit SpA moved closer to control of Commerzbank AG after investors tendered enough shares at the end of the Italian lender’s takeover offer to raise the stake it can potentially oversee to 47.6%. Singaporean state-owned investor Temasek Holdings Pte is ramping up its exposure to artificial intelligence and the Americas, a shift which helped push its net portfolio value to S$518 billion ($401 billion) in the last financial year. Some of the main moves in markets:StocksThe Stoxx Europe 600 fell 1.8% as of 10:09 a.m. London time S&P 500 futures fell 1% Nasdaq 100 futures fell 1.5% Futures on the Dow Jones Industrial Average fell 1.2% The MSCI Asia Pacific Index fell 1% The MSCI Emerging Markets Index fell 0.8% CurrenciesThe Bloomberg Dollar Spot Index rose 0.1% The euro was little changed at $1.1402 The Japanese yen fell 0.2% to 162.46 per dollar The offshore yuan was little changed at 6.8055 per dollar The British pound fell 0.2% to $1.3329 CryptocurrenciesBitcoin fell 2.7% to $61,922.8 Ether fell 2.9% to $1,731.74 BondsThe yield on 10-year Treasuries advanced three basis points to 4.58% Germany’s 10-year yield advanced eight basis points to 3.07% Britain’s 10-year yield advanced 10 basis points to 4.95% CommoditiesBrent crude rose 6.2% to $78.79 a barrel Spot gold fell 1.4% to $4,050.59 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from James Hirai.©2026 Bloomberg L.P.
