Today marked a decent mean-reversion day in Sentiment, with US Indexes and risk assets rebounding in a breather session.
Stock Markets are slowly recovering from the post-IEEPA tariff blocking from the Supreme Court as investors realise it would actually reduce duties for many major exporting nations, including Brazil, India, and especially China, which would see its duties reduced from close to 50% back to the current 15%.
Still, many nations have expressed their concerns, but traders don’t look too spooked, at least not yet. Equity markets remain in a tight consolidation range, so the story isn’t going to get too bright so easily.
Some geopolitical clouds remain, with US-Iran renewed talks expected on Thursday, where Markets and the World should learn more about what comes next. Will it be War or Diplomacy? Critical days are ahead of us.
Gold did retrace from the lighted ambiance in today’s action, but that only allowed Silver, Platinum, and Copper to move higher. Similarly, in commodities, the action remains quite technically confusing. With the swift up-and-down swings, it may still be too early to call for a decisive return to bullishness.
The US Dollar is on the other way remaining very solid in recent action despite the latest themes – A sign for an upside reversal? More on this coming up tomorrow.
Oil has found its floor and ceiling at $66.30, decisively awaiting news on the US-Iran situation. On that aspect, there will be a public address from President Trump this evening in a State of the Union speech at 21:00 ET.
Watch your headlines at the event for anything concerning the political and geopolitical news. The ride should stay bumpy for Markets. Traders should prepare their volatility suits.
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