Highlights
Oil prices pressured a bit higher again Wednesday after Iran claims to have seized two cargo ships and targeted a third in the Strait of Hormuz. This follows similar steps by the US Navy as it enforces a blockade against Iranian shipping. That included actually firing on and seizing an Iranian freighter over the weekend.
President Trump announced late Tuesday he would extend the ceasefire past his Wednesday deadline at the request of Pakistani mediators -- despite his repeated statements that he would not do so. That was after Trump called off his plan to send his top envoys to Islamabad for another round of talks with the Iranians. Trump said he is giving Iran's fractious leaders more time to unite and agree on a negotiated settlement. Trump has also said he would continue the US blockade.
No one knows whether US-Iranian talks will resume.
Markets appear somewhat risk-averse in the circumstances but relatively stable with US stock indexes not far off their record highs. Reaction was very limited on Tuesday to the delay in talks resuming. That would suggest investors expect renewed progress toward a settlement of some kind. Meanwhile, Axios is reporting Trump is giving Iran three to five more days to come back to the bargaining table with a reasonable counter-offer before he runs out of patience. Markets don't seem to buy the notion that an exasperated Trump would carry out his range of threats and risk a wider conflagration in the Gulf. So, yes, the TACO trade is on.
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.