According to Axios, Tehran and Washington have roughly 48 hours to sign a memorandum outlining the initial framework of the deal. If no preliminary agreement is reached within that timeframe, the US could resume strikes against Iran and continue Operation “Freedom” in the Strait of Hormuz.
Despite lingering uncertainty, hopes for de-escalation combined with strong US corporate earnings - particularly from AMD, whose shares are surging more than 16% are supporting momentum on Wall Street. The Nasdaq 100 and S&P 500 are currently gaining more than 1.6% and 1.1%, respectively. Nvidia shares are up more than 4% today amid euphoric gains of semiconductor sector, while Alphabet (Google) reaches new all-time high, at $400 per share.
Brent crude futures (OIL) are down more than 8% today to $101.5 per barrell. Meanwhile, yields on 10-year US Treasuries are falling by more than 6 basis points today, although they remain elevated near 4.35%. The weaker US dollar is also providing support for EUR/USD bulls.
US ADP employment change for April came in at 109k vs 120k exp. - much higher than 70k in March, but slightly below estimates. Eurozone PPI came in at 2.1% vs 1.8% exp. and -3% previously, supporting more "hawkish" ECB stance on interest rates.
Precious metals are performing strongly, with gold and silver gaining 3% and 6%, respectively. Meanwhile, Bitcoin climbed close to $83,000 — its highest level since February 1 — before pulling back to around $81,300.
- Crude oil: +2.3 million barrels (forecast: -2.7 million barrels; previous: -6.23 million barrels)
- Gasoline: -2.5 million barrels (forecast: -1.7 million barrels; previous: -6.08 million barrels)
- Distillates: -1.20 million barrels (forecast: -2.0 million barrels; previous: -4.49 million barrels)
EUR/USD chart (D1)
EUR/USD is climbing toward the 1.175 level today, supported by declining US Treasury yields and lower oil prices. Despite the sharp pullback in energy markets, a peace agreement between Tehran and Washington still appears relatively distant. However, if such a scenario materializes, bulls could regain enough momentum to push the pair back above the 1.18 level.
In recent sessions, the EMA200 has repeatedly acted as a strong support zone and is currently located near 1.1666.
Source: xStation5
At the same time, the basket of Big Tech stocks is posting strong gains, led by Nvidia with a rise of more than 4%, while Alphabet (Google) is advancing nearly 3%. The broader semiconductor sector continues to outperform as well. TSMC shares are surging more than 5%, while AMD, ASML, and Lam Research are among the strongest gainers across chip-related stocks.
Source: xStation5
Gold surges 3% amid falling treasuries yields and US dollar
US Open: Wall Street climbs higher driven by oil sell-off and technology stocks optimism 📈
BREAKING: US EIA gasoline inventories lower than expected, oil stockpiles up
BREAKING 🚨 Oil rebounds to $103 amid Iran remarks on Axios report
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
