Headlines: US, Iran reportedly getting close to a framework deal to end the war Iranian navy talks up possible safe transit through Strait of Hormuz as US threats recede The S&P 500 extends gains into new record highs as US, Iran close in on a deal to end war USD/JPY sees a…
ick knock down today, another intervention hit? Japan goes hard with latest intervention push, USD/JPY drops to ten-week low Eurozone economy wrestles with stagflation amid Middle East conflict, PMI data shows UK April final services PMI 52.7 vs 52.0 prelim Markets: WTI crude down nearly 12% to $90.50, Brent crude down over 11% to $97.97 Equities rallying strongly with major indices in Europe up between 2% to 3% S&P 500 futures up 1.0%, Nasdaq futures up 1.6% on the day US dollar falls across the board; USD/JPY intervention play earlier faded somewhat US 10-year yields down ~7 bps to 4.35% Gold up over 3% to $4,712 and silver up nearly 7% to $77.73 Bitcoin up 1.1% to $82,553 Is it all too good to be true?
Things are starting to take shape today in what looks to be a potential path towards ending the conflict between the US and Iran. And markets are not waiting around to cast any doubt on that as oil prices sink while risk trades rally further on the headlines. A report by Axios kicked things off in saying that the US and Iran are nearing a framework agreement to putting a stop to the war.
That being said, there’s quite a number of conditions that need to be met. The ceasefire will continue as both sides will also retreat from putting a stranglehold on the Strait of Hormuz. Only if that happens, then only we will start to see negotiations on nuclear – which is still a key sticking point between the two sides.