Headlines: Iran official reportedly says Oman proposal on Strait of Hormuz has no chance of success Yemen’s Houthis are considering fees for ships sailing through the Red Sea – Reuters Is the U.S. bull rally running out of steam?
Fed preview: It’s all about the dissenters ECB’s Patsalides: Rate hikes in ECB projections don’t obligate us German import prices fell in June due to drop in energy prices UK mortgage approvals rebound in June but credit data continues to point to worrying signals Markets: WTI crude up 5% to $83.20, Brent crude up 5% to $88.40 European equities mostly a touch lower; S&P 500 futures up 0.2% CAD and JPY lead, AUD lags on the day 10-year Treasury yields up 2.6 bps to 4.63% Gold up 0.1% to $4,030 Bitcoin up 1.0% to $64,487 It was a nervy session, not least after Asian stocks suffered another torrid day after yesterday’s bloodbath
Things were looking bleak with the KOSPI dropping by roughly 13% at one point, before some late buying helped to see South Korea’s benchmark index halve that to close just 6% lower. The rebound helped to at least preserve some calmer heads as we got into European trading, with more negative news arising from US-Iran developments. The latest being that Iran, as expected, rejecting Oman’s proposal on joint management of the Strait of Hormuz.
That sent oil prices higher with WTI crude up 5% to $83.20, helped by threats by the Houthis along the Red Sea too. In the equities space, European stocks pared some early losses while US futures also rebounded from a struggling mood earlier in the day. Of note, S&P 500 futures are up 0.2% with Nasdaq futures up 0.3% now.