Another Busy Week (Geopolitics and the Fed)

What’s in Today’s Report:

• Weekly Market Preview: Two Headwinds Possibly Removed? U.S./Iran War and Fed Rate Hikes
• Weekly Economic Cheat Sheet: Does the Warsh Fed Give Markets a Dovish Surprise?

Futures are sharply higher (up more than 1%) after the U.S. and Iran announced a peace deal that will reopen the Strait of Hormuz.

Global shares are rallying solidly after both the U.S. and Iran finally announced an agreement to end hostilities and fully reopen the Strait, meeting market expectations.

Oil prices are falling around 5% on the news and at multi-month lows, although still far above pre-war levels.

Despite the peace deal announcement, geopolitics will remain an influence on the market because the deal still has to be signed on Friday (and as we’ve seen, things can change quickly in this situation).  However, barring a major set back, geopolitics should face as a market influence by the end of the week.

Today, focus will be on economic data via the Empire State Manufacturing Index (E: 12.5) and Industrial Production (E: 0.2%).  With the Fed looming, Goldilocks data that shows solid activity and no upward price pressures will be welcomed by the market and add fuel to the rally.