Equities retreat 0.5-1% in early trading as geopolitical risks and profit-taking weigh on momentum stocks after a 30% monthly gain.
Global equities are poised to open 0.5-1% lower as oil prices and bond yields climb following renewed US-Iran tensions. Futures point to declines in US and European markets, while the Korean Kospi fell 3% in early trading.
The pullback follows a 5% weekly rally and nearly 30% surge in momentum stocks over the past month, prompting profit-taking. Consumer sectors and heavily shorted names outperformed in a catch-up move, though no macro data or earnings catalysts drove the shift.
Markets had priced in expectations for a peace deal, but fresh US strikes on Iran reversed sentiment. Oil and yields, which had eased earlier, retraced higher, adding pressure on risk assets.