Highlights
Markets are riveted by the unfolding disaster in the Middle East and on edge awaiting President Trump's 8 pm ET Tuesday deadline for Iran to reopen the Strait of Hormuz or face devastating attacks on infrastructure including power plants, bridges, and oil facilities. That demand represented a shift from Trump's position in recent weeks when he suggested he might end US involvement in the war and let others deal with reopening the Strait of Hormuz. Now Iran reopening the Strait seems to be his sine qua non.
On Tuesday, Trump renewed his threat to destroy a whole civilization, the US and Israel stepped up their strikes, and there were conflicting reports over whether Iran stopped participating in talks aimed at ending the conflict.
Oil prices and US bond yields are up slightly while risk assets including stocks are suffering moderate losses as investors wait for news. Markets are not behaving as if they believe Trump will deliver on his latest threat but there is enough uncertainty that risk aversion and inflation worries are rising as Trump's deadline approaches.
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.