Brent crude oil futures fell 2% to $102 per barrel in the first trading session of April, following a record monthly jump in March, weighed by hopes of de-escalation in the Middle East. President Trump told reporters that US forces could withdraw from Iran within two to three weeks and suggested a deal with Tehran might be possible, though not necessary to end the conflict. However, uncertainty remained as additional US troops arrived in the region, while Tehran said no formal peace talks were underway but signaled a willingness to end the war if its conditions are met. All eyes are now on Trump’s nationwide address on the Iran conflict later today. Meanwhile, Iranian drones struck fuel tanks at Kuwait International Airport, triggering a large fire and causing damage, adding to recent attacks on energy infrastructure. Elsewhere, API data showed US crude inventories surged by 10.263 million barrels last week.

The unemployment rate in Italy edged up to 5.3% in February 2026 from an upwardly revised 5.2% in January, which was the lowest level on record. The latest figure came in line with market expectations. The number of unemployed individuals rose by 36 thousand month-on-month, reaching 1.36 million. Meanwhile, the employment rate fell to 62.4% from 62.6%, with the number of employed persons falling by 29 thousand to 24.15 million. The drop affected both permanent and temporary employees, while the number of self-employed workers increased. The country’s employment rate remained among the lowest in the euro zone. Meanwhile, the youth unemployment rate, measuring jobseekers between 15 and 24 years old, dropped to a record low of 17.6% in February from 18.5% in January. The inactivity rate held steady at 33.9%.

The S&P Global Spain Manufacturing PMI fell to 48.7 in March 2026 from 50 in February, marking the weakest reading since April 2025 and missing market expectations of 50.4. The Middle East conflict intensified, driving geopolitical uncertainty, supply chain disruption and sharply higher energy and input costs. Output and new orders declined at a faster pace, with international demand posting its steepest drop since last April, while employment fell notably as firms adjusted to weaker conditions. Business confidence deteriorated sharply, hitting its lowest level since October 2023, as firms cited concerns over prolonged economic slowdown and rising inflation. Input prices surged to their highest since late 2022, supplier delays worsened to the greatest extent in over three years, and companies increasingly relied on existing inventories while cutting purchases and raising selling prices where possible.

The dollar index fell to 99.5 on the first trading day of April, hitting its lowest level in a week amid hopes for a swift resolution to the Middle East conflict. President Donald Trump said the US would wrap up its military campaign in Iran in two or three weeks with or without a deal. Still, traders remain cautious as more US troops are being deployed to the region and the Strait of Hormuz remains largely closed. Market participants are now awaiting Trump’s nationwide address on the Iran situation later in the day. Last month, the dollar gained 2.3% as investors sought the safe-haven asset amid fears of a prolonged war. The currency was also supported by diminishing expectations of Federal Reserve rate cuts this year, as the conflict drove oil prices sharply higher, stoking inflation concerns. Meanwhile, Fed Chair Jerome Powell appeared to reassure markets, saying that long-term US inflation expectations remain grounded.

European natural gas futures dropped more than 5% toward €48 per MWh on Wednesday, extending the decline from the previous session, tracking broader weakness across energy markets amid hopes that the Middle East conflict may be nearing a resolution. President Donald Trump suggested that the war could end within two to three weeks; however, traders remain on edge as additional US troops are being deployed to the region and the Strait of Hormuz remains largely closed. Prices were also weighed down by warmer weather and increased energy output, which eased regional demand. Last month, European gas prices surged nearly 60%, marking the largest monthly increase since September 2021 amid concerns over deeper supply disruptions, as the war led to the closure of the Strait and the shutdown of the world’s largest LNG facility in Qatar.

The RatingDog China General Manufacturing PMI fell to 50.8 in March 2026 from 52.1 in February, signaling a slowdown in factory expansion and below the expected 51.6. Output and new orders continued to rise, though at a slower pace, with production expanding for the fourth consecutive month. Backlogs increased as demand outpaced production, while employment rose for the third month, marking the longest stretch of job creation since mid-2021. Buying activity continued to expand, lifting input stocks slightly, though finished goods inventories contracted marginally. Supplier delivery times lengthened to the greatest extent since December 2022. Input price inflation surged to its highest since March 2022, while output price inflation hit a four-year peak, driven by rising energy costs amid Middle East tensions. Despite these pressures, manufacturers remained optimistic for production over the next 12 months, supported by stronger demand, capacity investment, and government policies.