SpaceX IPO Oversubscribed With More Than $10 Billion Orders | The Opening Trade 6/9/2026
Speakers
Sam Lynton-Brown
— Global Head of Macro Strategy, BNP Paribas
Jeffrey
— Senior Market Strategist, BNP Paribas
Alisa Wood
— Partner, KKR
Summary
Markets rebounded on revived AI optimism driven by mega IPOs from SpaceX and OpenAI, while oil prices eased on de-escalation between Iran and Israel. The Fed is expected to hike rates three times due to strong US growth, and emerging markets are seen as structurally attractive. European markets saw mixed performance with pharma M&A and defense project halts in focus.
- AI and mega IPO hype (SpaceX, OpenAI) lifted tech stocks and sentiment after Friday's selloff.
- Oil prices declined as Iran and Israel agreed to hold fire, but Strait of Hormuz remains blocked.
- BNP Paribas expects the Fed to hike three times starting December due to re-accelerating labor market and sticky inflation.
- BNP Paribas sees a structural bull case for emerging markets supported by fiscal and monetary credibility improvements.
- GSK announced a $10.6B acquisition of Nuvalent to re-enter oncology, while AstraZeneca reported positive obesity pill data.
- German and French joint fighter jet project was halted due to cross-border disagreements.
- Italian banks rallied on takeover bids for Monte dei Paschi, with the government staying neutral.
- Bond yields edged lower on oil weakness, but the underlying trend remains upward on central bank tightening expectations.
Ideas
Fed rate hikes make bonds unattractive
The Fed will need to hike three times starting in December due to strong US growth, re-accelerating labor market, and inflation around 3%. This makes it difficult not to unwind the insurance cuts, which will push bond yields higher, making long-term US Treasuries unattractive.
Structural bull case for EM
Emerging markets have structural positives from fiscal policy convergence, central bank inflation-fighting credibility, and financial market liquidity improvements, creating a more supportive backdrop despite US rate hikes. The dollar is weaker than fair value, and strong US cyclical growth benefits EM without the typical headwind of a strong dollar.
Up Next
This Bloomberg Markets video, published June 09, 2026, features Sam Lynton-Brown discussing TLT, EEM. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Sam Lynton-Brown · Tickers: TLT, EEM