A steadier mood set to greet European traders today
So, do we have a deal or no deal? Or maybe a little bit of both? That is the question that needs answering as markets look to the weekend.
For now, markets are reacting kindly in taking to Trump's latest boy who cried wolf act. Here's a quick catchup to the happenings from yesterday:
- Trump threatens to hit Iran hard "at some point" and take over Kharg Island
- Trump then cancels the attacks and says that a deal is more or less done now
- In his words: "Final points have been approved by all parties" and the signing will be announced "shortly"
- Israeli sources said Netanyahu was surprised by Trump's announcement
- Iran media claims that Supreme Leader Mojtaba Khamenei has not agreed to the US proposal
- Iran reaffirms that Strait of Hormuz remains closed once again
- US shoots down two Iranian drones near the Strait of Hormuz
- Iran military vows "decisive, regret-inducing" response to US attack
That makes it nearly 40 times now that Trump has implied that a deal with Iran is "very close" or something with similar phrasing. So, is this time really different? Only time will tell.
Again, I don't doubt that the US and Iran are close to achieving some form of compromise. But at the same time, it is best to be reminded that nothing can be agreed until everything is agreed upon.
And even then, this deal will just represent a framework agreement and a baseline for both sides to start working on nuclear arrangements over the next 60 days. It could all still fall apart during this period. So, it is not to say that the conflict will be effectively over once a deal is signed.
More importantly, it doesn't mean the Strait of Hormuz will be reopened and return immediately to its pre-war state.
For now though, markets are taking in the calm and choosing to keep the faith in Trump's messaging. US stocks staged a strong rally yesterday as oil prices and bond yields fell off hard.
Tech shares led the way with the Nasdaq jumping by 2.5% as the SpaceX IPO price is confirmed for $135 per share. Public trading will begin today and that everyone and anyone is expecting an "IPO pop" in the day ahead, despite the already lofty valuations set out by the company.
For some context: US futures nudge up on the session, focus turns to SpaceX IPO
As much as US-Iran headlines will remain as a key driver of trading sentiment, I reckon Wall Street will be taking its cue from how SpaceX shares fare on the first day of trading more than anything else.
A new big player has entered the room and everyone in it will surely have to keep an eye on their backs.
S&P 500 futures are now up 0.2% with Nasdaq futures also up 0.2% so far on the day.
Meanwhile, WTI crude is trading down by 1.6% to $86.30 with the dollar keeping somewhat steadier after slight losses overnight.
This article was written by Justin Low at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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