Oil Prices Dive on Measured Iranian Response

Equities Rally Hard and Bonds Sell-Off

Highlights

• A risk-on start to a week packed with macro data and mega-cap earnings reports

• Rising perceived odds of a GOP sweep continue to support stocks smash Treasuries

• Outside of Tech and Telecom, there is barely any earnings growth in the S&P 500

• Japanese markets get a boost from a tumbling Yen after lousy election result for the ruling LDP

Key Takeaways

Risk-On Sentiment as Oil Prices Plunge on Geopolitical Relief

• The week begins in a risk-on mood with oil prices plunging as much -5% overnight as investors breathe a sigh of relief that Israel did not go any further than it did on Saturday’s retaliatory strike and Iran’s verbal response being more muted than expected (the shekel also emerged as the world’s strongest currency overnight).