From a "Deal" to "Evacuate" in Less than 24 Hours

A sharp turn from “deal” to “evacuate” in the Middle East

Highlights

• A sharp turn from “deal” to “evacuate” in the Middle East

• 10-year yields ticked up in Japan but remain steady in Europe and the U.S.

• The Fed’s dot plots are mainly meaningless as forecasts become increasingly volatile

• Macro data continue to support the bullish story in India

Key Takeaways

• De-Escalation in the Middle East Not in Sight Yet: Yesterday at this time, we had reports circulating about Iran seeking a diplomatic solution, and so the risk-on trade staged a revival. Twenty-four hours later, we hear from President Trump that residents of Tehran should flee the city (as he left the G-7 summit early while kyboshing any attempt by his counterparts to call for a “cease fire” in classic Neville Chamberlain fashion), and the tensions and hostilities between Israel and Iran have continued to mount.