Stocks prices are up, and oil jumped on a report that the US will scrap waivers allowing the purchase of some Iranian crude. Big investors have resumed buying shares of FANG. The prospect of low interest rates and a potentially expanding US market has enabled investors to come back into the bull market’s historically most profitable trades.
Bond prices are relatively flat, and the 10-year treasury is yielding 2.57%. With corporate reporting season in full swing, investors are looking for clues as to whether the dovish policy pivot from the world’s central banks help improve the global growth picture. Additionally, this week’s important US data is at the end of the week with Thursday’s durable goods and Friday’s Q1 GDP.
The Trump administration said it won’t renew waivers that let countries buy Iranian oil without facing US sanctions. This move sent shock waves through the energy markets and now risks upsetting major importers such as China and India. White House Press Secretary, Sarah Sanders, said, “this decision is intended to bring Iran’s oil exports to zero, denying the regime its principal revenue”. The current set of waivers, issued to China, Greece, India, Italy, Japan, South Korea, Taiwan and Turkey, expire May 2.