U.S. President Donald Trump said he is considering joining Saudi Arabia in retaliatory action against the Tehran-backed Houthis in Yemen. The issue came into focus after the Houthis struck Riyadh's main airport, after which Saudi Arabia reportedly asked Washington for “urgent defense support.”
At the same time, the latest escalation further complicates hopes for a lasting end to the war in the Middle East. On Saturday, Russian state media said Vladimir Putin relayed Tehran's message to Trump about a possible end to the war in Iran.
In Europe, markets are also watching the war in Ukraine. Trump declared an “energy ceasefire” between Russia and Ukraine, but it remains unclear whether either side has agreed to a truce, as the two countries continue trading strikes on energy infrastructure.
In financial markets, investors are bracing for a busy week. Major U.S. banks including Bank of America, Citigroup and Goldman Sachs are due to launch the earnings season, with their results likely to shape sentiment. S&P 500 futures were little changed, Nasdaq 100 futures rose 0.24%, and Dow Jones Industrial Average futures were flat.
Meanwhile, the International Monetary Fund and the World Bank open their annual meetings in Bangkok on Monday, bringing together finance ministers, central bankers, business leaders and asset managers. On Tuesday, the IMF is set to publish its World Economic Outlook and Global Financial Stability Report, which investors will watch for clues on the global economy and the resilience of the financial system.
