Global Markets Mixed as Oil Prices Ease, Nikkei Hits Record High

Global markets opened with cautious optimism on Tuesday, buoyed by a slight easing in energy prices. After a tense period marked by geopolitical anxiety, soaring shipping costs, and depleted emergency oil reserves, crude oil prices have begun to recede. Brent crude is trading at $101.54 per barrel, down 0.69%, while WTI crude has fallen 1.09% to $90.12 per barrel. Despite this relief, analysts warn that the situation remains volatile, with the potential for conflict to escalate.

In Asia, the Nikkei index in Japan surged by 2.5% to surpass the 70,000 mark, reaching a historic high. However, markets in Hong Kong saw a slight decline, and trading volumes were thin as major exchanges in mainland China and South Korea were closed for holidays.

Wall Street futures indicate a mixed opening. Last week, the Nasdaq composite reached a new all-time high, driven by the technology sector, particularly chipmakers like Nvidia and AMD. Conversely, the Dow Jones and S&P 500 indices experienced minor losses. Despite the upward trend in major indices, analysts at Bank of America noted concerning signs, including an 'oversold' indicator and the fact that over 50% of S&P 500 stocks have fallen more than 20% from their peaks, suggesting a 'bear market' for most individual stocks.

The Tel Aviv Stock Exchange is expected to open positively, with dual-listed Israeli stocks showing strong arbitrage gaps. Notably, Camtek, Elbit Systems, AudioCodes, and Ormat Technologies are anticipated to open higher, while Formula Systems is projected to open significantly lower. Other dual-listed companies like Nice, Teva, and Palo Alto Networks are also expected to see modest declines.

Regarding fixed-income markets, despite high yields on U.S. government bonds, experts at UBS and Schwab Research advise investors against panic. They suggest that current high yields offer a cushion against volatility and present attractive income opportunities, particularly in short- and medium-term bonds.