MORNING BID EUROPE-Trump threatens Iran with force
A look at the day ahead in European and global markets from Tom Westbrook
Traders were hunkering down into the weekend, with threats flying between the U.S. and Iran, and nerves rippling through markets from listed private equity funds.
PMI surveys, U.S. PCE and GDP data and a smattering of corporate earnings headline the calendar, but politics and the risk of war seemed to loom largest in investors' minds as the dollar headed for its largest weekly rise in four months.
U.S. President Donald Trump has set a deadline of 10 to 15 days for Iran to cut a deal over its pursuit of nuclear weapons, or face "really bad things".
It is classic Trump theatre, so asset prices have not yet moved a great deal. But the U.S. has sent aircraft carriers, warships and jets to the region and traders are poised to send oil and the dollar higher in the event of conflict.
Iran said it would respond if attacked.
Brent crude futures LCOc1 have topped $72 a barrel - a 6-1/2 month high - and the dollar was firm in the Asia session.
Trump, meanwhile, posted about aliens on social media, saying he would order Pentagon chief Pete Hegseth and other agencies to release government files related to aliens and unidentified flying objects.
It makes you wonder what he is trying to distract from.
Walmart's new boss sounded cautious on consumer spending on Thursday.
And private equity stocks hit the skids after Blue Owl's OWL.N latest strategy to return capital from a small debt fund spooked investors.
Blue Owl said it sold $1.4 billion in assets, to return some of the proceeds to investors, and permanently removed an option for quarterly redemptions at one fund - playing into already swirling concerns about valuations and liquidity at PE funds.
Key developments that could influence markets on Friday:
- U.S. PCE and GDP data
- Global PMI surveys
- Earnings at Danone DANO.PA, Air Liquide AIRP.PA and Anglo American AAL.L
US air bases with increasing military buildup
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