Headlines:
Markets:
- WTI crude up 1.1% to $97.50, off earlier highs near $99
- 10-year Treasury yields down 3.3 bps to 4.55%
- USD holds firmer, AUD and NZD lag on the day
- DAX up 0.6%, CAC 40 up 0.3%
- S&P 500 futures up 0.2%
- Gold down 0.4% to $4,522
- Bitcoin down 0.4% to $77,342
Once again, we’re left waiting on more US-Iran developments in closing out the week.
After rumours of an imminent announcement of a framework agreement, there still hasn’t been any official word on that yet as we get into the final stretch of the week.
Iran continues to review the US proposal and are claiming that they are letting more vessels pass through the Strait of Hormuz with their permission. However, shipping data earlier in the week debunked the first set of numbers and are likely to debunk the ones announced today as well.
That being said, all of this appears to be a ruse to try and make it seem as though they are playing ball to meet conditions for a framework agreement to be signed. And you can bet that the US will care less about what is true or not, as long as a deal can be agreed upon.
However, it is best to be reminded that the framework agreement is just the next step in facilitating nuclear discussions. That is still the major sticking point between both sides at the moment.
For now, markets are holding some cautious optimism but are keeping more mixed in trading today.
Oil prices are a touch higher but have retreated from the highs earlier in the session. WTI crude is up 1.1% to $97.50 but is nearly $2 down from the highs a couple of hours ago.
This comes as we see bond yields also continue to come off the boil in the second half of the week. 10-year yields in the US are down 3 bps to 4.55% with 30-year yields down 3.5 bps to 5.075%.
In that lieu, equities are moving higher but not really building too much on the gains from yesterday. US president Trump offered up a bit of a teaser though, in proclaiming a “NEW STOCK MARKET RECORD!” via a short and concise tweet.
European indices are up around 0.4% to 0.7% mostly while S&P 500 futures are up 0.2% so far on the day.
In FX though, the dollar is the one holding firmer across the board with EUR/USD down 0.2% near 1.1600. Large option expiries remain in play for the pair, so that is something to take note of as well. Meanwhile, USD/JPY is up 0.1% to 159.10 and AUD/USD down 0.4% to 0.7121 currently.
As for precious metals, gold is seen down 0.4% to $4,522 and silver down 1.1% to $75.87 amid a more mixed showing by market players.
In closing out the week, it’s still all on US-Iran headlines in the next eight hours.
