Trump-Induced Cease-Fire Takes Global Stock Markets Up and Oil Prices Down
The risk-on trade resumes following a Trump-led truce
Highlights
• The risk-on trade resumes following a Trump-led truce
• Crude oil futures slide back down as the conflict de-escalates
• PCE deflator expected to remain on a disinflationary path
• Strong central bank demand to sustain the gold rally
Key Takeaways
• Risk-On Reboot: Within a 24-hour span, we saw two developments take place to re-ignite the risk-on trade. Yesterday, we saw Iran respond with limited (more like symbolic) strikes on U.S. bases in Qatar, which carried with them an early warning and were easily intercepted in a bizarre form of rapprochement, and yesterday evening, we caught wind of this Trump-led cease-fire.
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