The Fuse
What are futures doing?
Equity futures are up strong as signs point toward an end to the Iran War. A one page document is being circulated with talking points that may end this battle once and for all. Markets cheer the effort, new highs likely on the open.
News
Solid gains in Europe with the STOXX up 1.2% led higher by strong moves in France and Germany. FTSE also up nicely, 1.5%. Crude oil is getting smashed, off 14% on heavy selling, gold is rallying more than 3% as is silver. The USE dollar index fell .4%. Yields are down in Germany and the US, bunds off 4bps while 10 yr yields down 5bps. Japan markets were closed, Shanghai up 1.2% and Hong Kong up .9%.
Volatility
If the was is ending then there is no need for a premium level in volatility, that may be wiped away today or soon. The VIX is now well below 17% this morning and that could last a bit, but no doubt the trend is up for markets. The 20 day moving average of VIX is coming down fast.
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