Headlines:
Markets:
- WTI crude up 3% to $91.37
- Stocks move down, DAX and CAC 40 both lower by 0.5% on the day
- S&P 500 futures down 0.3%, Nasdaq futures down 0.7%
- US dollar holds steadier across the board
- US 10-year yields up 2.5 bps to 4.506%
- Gold down 1.7% to $4,381
It was a slower session but one that saw markets move with caution as US-Iran tensions linger.
There’s still no official word on a framework agreement or memorandum of understanding, with hopes of it being “imminent” now fading. Iran continues to maintain a firm stance on their red lines and it remains to be seen how both sides will want to progress from here.
In the meantime, we’re seeing strikes continue between Israel and Lebanon and also with the US hitting Iran targets for the second time in three days. cEaSeFiRe MuCh?
Oil prices crept higher again as such with WTI crude up over 3% to $91.37 currently. Meanwhile, equities eased lower with major indices in Europe falling. The DAX and CAC 40 are both down by 0.5% on the day. US futures are also following suit with chipmakers lagging now. S&P 500 futures are down 0.3% while Nasdaq futures are down 0.7%.
As the risk mood slides back, we’re seeing bond yields push higher too. 10-year Treasury yields are back up by 2.5 bps to be above 4.50% again. Meanwhile, 30-year yields are also sitting near 2 bps higher to be near 5.03% on the day.
In the major currencies space, the dollar held firmer for the most part but saw early gains pull back a little. EUR/USD is down 0.1% to 1.1617 but was as low as 1.1585 earlier in the day. USD/JPY continues to keep around 159.40-50 levels, with intervention risks looming large the closer the pair gets to the 160.00 mark. Meanwhile, AUD/USD is down 0.3% to 0.7117 on the day.
Besides that, precious metals are also struggling hard with gold down 1.7% to $4,381 and silver down 2.1% to $73.03 at the moment. A dent to the recent optimism and renewed fears surrounding a more hawkish Fed are weighing on precious metals this week.
