Ceasefire optimism fades, leaving markets in retracement mode
Markets are giving back some of yesterday’s gains as doubts mount over Tuesday’s US-Iran ceasefire agreement, with Israel pressing its assault on targets in Lebanon, Tehran showing no sign of easing its grip on the Strait of Hormuz, and all sides remaining far apart on basic terms. Both the Brent and West Texas Intermediate global crude oil benchmarks are knocking on the $100 threshold once again, front-end Treasury yields are pushing higher, equity futures are pointing to losses, and the dollar is back to outperforming its higher-beta and carry-driven counterparts. There’s little evidence to suggest that the agreement is translating...