Why Are Markets Ignoring Negative U.S.-Iran Headlines Again?
What’s in Today’s Report:
- Why Did Markets Ignore Negative U.S.-Iran Headlines (Again)?
- Chart: Oil Prices Remain Subdued Despite Geopolitical Escalations
Futures are higher on hopes that another last-minute U.S.-Iran ceasefire deal will be reached before tomorrow’s deadline with slim chances of a U.S. extension this time around.
Meanwhile, domestic traders are awaiting Fed Chair nominee Kevin Warsh’s Senate confirmation hearing on Capitol Hill today as any hints at the potential futures policy path (particularly dovish commentary) could move markets.
Economically, U.K. Unemployment fell to 4.9% vs. (E) 5.2% in April while the German ZEW Survey badly missed estimates, however global market focus remains largely on the fragile geopolitical situation in the Middle East.
There are two notable economic reports due out in the U.S. today with Retail Sales (E: 1.4%) and Pending Home Sales (E: 0.9%) scheduled to be released this morning.
In addition to Warsh’s Senate confirmation hearing (beginning at 10:00 a.m. ET), Waller will speak this afternoon (2:30 p.m. ET) and there is a 6-Week Treasury Bill auction at 11:30 a.m. ET, all of which have the potential to impact bond yields and subsequently influence equity markets.
Finally, earnings season continues with UNH ($6.48), GE ($1.63), MMM ($2.02), ISRG ($1.63), UAL ($1.08), and COF ($4.61) all due to release quarterly results today.