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Trump Signals Iran War Deal ‘Soon’ as Strait of Hormuz Stays Open, Easing Market Fears

                                   U.S. President Donald Trump said a deal to end the Iran war could come “soon,”   President Donald Trump said a deal to end the Iran war could come “soon,” a comment that helped calm global markets as the vital Strait of Hormuz remains open to commercial shipping. The waterway, which handles roughly one‑fifth of the world’s oil supply, has been a central concern for investors since the conflict began. With tankers continuing to move through the strait, oil prices have stabilized after weeks of volatility. Analysts note that even the perception of reduced risk in the region can ease pressure on global inflation, particularly in energy‑dependent economies like Canada. For Canadian households, a more stable oil market could help limit further increases in gasoline, transportation, and food costs. Equity markets reacted cautiously but positively,...
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Treasuries Extend Selloff Amid Hawkish Fed Views


The world’s largest bond market is experiencing continued turbulence as hawkish Federal Reserve (Fed) views persist. Here are the key points:

  1. Asian Stocks Under Pressure: Asian stocks are set to open lower after US shares extended their losing streak to the longest since January. Equity futures contracts in Japan, Hong Kong, and South Korea indicate early losses, while those in Australia and China gained. Investors will closely watch Asian chipmakers like Taiwan Semiconductor Manufacturing Co. and Tokyo Electron Ltd.

  2. ASML Holding NV’s Warning: Europe’s most valuable tech firm, ASML Holding NV, reported a tumble in orders during the first quarter. Its China sales are likely to be hampered by US export control measures. This news has raised concerns for semiconductor stocks.

  3. US Bond Market: Despite solid economic readings, the US bond market faces headwinds. Jerome Powell’s recent comments have dampened rate-cut expectations. However, dip buyers emerged in the Treasury market, with two-year yields dropping below 5%. A $13 billion sale of 20-year bonds also drew solid demand.

  4. Investor Sentiment: Investors remain skeptical about how much further US stocks can rally after their strong performance in the first quarter. The latest pullback occurs even as US economic data point to continued strength.

  5. Dollar and Currencies: The dollar was little changed in Asia after falling for the first time in six days. Japanese yen and Korean won have also experienced significant declines against the dollar this year.

  6. Outlook: UBS Global Wealth Management expects the yield on the 10-year US Treasury to end the year around 3.85%. The Fed’s rate cuts, though delayed, are still anticipated, leading to further bond market adjustments.

In summary, the bond market remains sensitive to Fed communications, economic data, and global events. Investors should closely monitor developments as interest rates continue to be a focal point.


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