Equites rallied off the headline that Iran wants to restart nuclear talks. The Blomberg headline immediately below read “Isreal denies reports that Iran wants to de-escalate.”
The very next headline reads “Iran Ready to deliver major Blow to Isreal” according to a senior Iranian official.
What headline is correct?
As noted several times the first virtue that is lost in war and politics is truth.
Over 90% of equity trades are now done algorithmically via momentum driven headlines. Size and direction are the primary determinants.
The regulatory entities have commented about today’s trading environment, stating that reforms must occur, especially relating to the number of false headlines generated and repeated by “bots.”
The outcome of war is unquantified. If the Iranian war machine [and political structure] is being decimated by the degree that is being reported, will Iran act out of desperation?
For over fifty years Iran has chanted “Death to America. Death to Isreal.” The annihilation of Isreal is written into Iran’s constitution. [Wow! Talk about the ultimate in hate speech]
Vice President Vance clearly articulated the “Trump Doctrine” during this year’s USNA Commissioning Address. The Vice President clearly stated the US will not enter into any endless wars, any wars will have only one objective…to win and the reasons for any such commitment will be clearly articulated.
Like all, I hope tensions to de-escalate for desperate people typically do desperate things.
Oil declined about 2% yesterday on the belief that Iranian crude production will be spared.
Long dated Treasuries, recovered some of their losses on the decline of oil however ended yields ended higher causing a nominal steepening in the curve. The auction of the 20-year Treasury was regarded as smooth.”
Retail sales, import/export prices and capacity utilization/industrial; production is released today. How will the data be interpreted? The Atlanta Now GDP model is still suggesting 2Q growth could be over 4%.
Last night the foreign markets were down. London was down 0.43%, Paris down 0.93% and Frankfurt down 1.02%. China was down 0.03%, Japan up 0.59% and Hang Seng down 0.34%.
Futures are down 0.50% on geopolitical concerns. Oil is up about 2%. The 10-year is up 10/32 to yield 4.94%.
