US equity futures are under pressure, Asian markets are mostly lower, and European equities are also weaker. Risk sentiment is weighed down by escalating tensions around the Strait of Hormuz, with disruptions to shipping activity and ongoing uncertainty around diplomatic progress. Reports of seizures and military activity in the region have pushed oil prices higher and raised concerns about prolonged supply disruptions. Markets are also focused on potential economic implications, with expectations for softer European activity data and rising cost pressures globally, while uncertainty around the duration of the disruption continues to cloud the outlook.

Companies mentioned: lululemon athletica, Forvia, Apollo Global Management, American Airlines Group, Alaska Air