WS #8161
The dominant narrative remains the U.S.-Iran peace deal, which is now showing signs of chaos and mixed signals. Trump stated the deal is not 'fully negotiated yet,' contradicting earlier reports of an agreement in principle. This has caused oil prices to fall amid the uncertainty. Separately, a deadly accident in a Chinese coal mine has caused coking coal futures to jump by the daily limit, signaling supply disruptions. India's state-run banks are sliding as bond yields climb, and the Indian rupee is considered undervalued by the RBI governor. China trading curbs may hit $32 billion of HK assets, according to Citic. The Iran deal narrative is now DE-ESCALATING in terms of certainty, which is bearish for oil prices in the short term but could reverse if the deal collapses.
Key developments
- Trump says Iran deal not 'fully negotiated yet,' contradicting earlier reports of agreement in principle
- Deadly Shanxi coal mine accident sends Chinese coking coal futures limit-up
- India state-run bank stocks slide 6% in May as bond yields climb; RBI says rupee undervalued
- Citic warns China trading curbs may hit $32 billion of HK assets