It was reported that Iran has proposed a new plan to the United States for reopening the Strait of Hormuz. Previously, efforts to restart negotiations had reached a deadlock. Boosted by this news, the increase in crude oil prices narrowed, and Asian stock markets continued to rise.
Brent crude, the global benchmark, rose 1.7% to around $107 a barrel as reopening the Strait of Hormuz would allow oil and gas to be transported through the key waterway. According to Axios, a US official and two people familiar with the matter said Iran has proposed a new plan to the US through a Pakistani mediator regarding reopening the Strait of Hormuz and ending the war.
Asian stocks rose 1.3%, with the MSCI Emerging Markets Index hitting a record high. The decline in oil prices helped curb inflation and support economic growth. As market sentiment improved, U.S. stock futures erased their early losses and rose 0.1%. The Bloomberg Dollar Spot Index erased its early gains and fell 0.1% after the report was released.
Yukio Tsuboi, chief strategist at Daiwa Securities, said: “This news is in line with market expectations that Iran and the United States will eventually reach an agreement. It comes at a peak time of the earnings season, and the release of this news is very timely.”
Global stock markets started the week near or at record highs, with the S&P 500 up nearly 10% since the end of March and on track for its best monthly gain since the end of 2020. The US Department of Justice ended its investigation into Federal Reserve Chair Jerome Powell, clearing the way for Kevin Warsh’s appointment and boosting expectations that the Fed might resume cutting interest rates by the end of the year.
Efforts to restart negotiations were frustrated over the weekend, and market sentiment shifted as a result. At that time, US President Trump cancelled the visit of his special envoy, while Tehran said it would not negotiate under threat. Although global stock markets have recouped most of the losses related to the war and hit record highs, this week’s rally will face a key test as the Federal Reserve and the European Central Bank announce policy decisions and major technology companies release earnings reports.
Technical analysis:
The functions of WeChat are subject to occasional restrictions. If you want to experience the plugin, please leave your contact information when adding a friend so that we can add you back easily!!!
Gold: Although the price retraced to the 4670 level in the early morning session, it quickly climbed back above 4700. Iran’s proposed three-step plan is beneficial to the market. As long as the US does not explicitly oppose it, the gold price will continue to attempt to recover the resistance level of 4720. Today, we will pay attention to the opportunity to buy on pullback after the price breaks through 4720/25. For detailed positions, please consult the plugin.
(Gold 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and leave your contact information for us to get back to you.
The Nasdaq index: The price has touched above 27,300, and there is a certain accumulation of short-term profit-taking. If the US-Iran negotiations can proceed smoothly, there is still room for further price increases; but if the negotiations continue to encounter setbacks halfway, a liquidity sweep may occur. We will consider buying to catch the rebound only after the liquidity sweep near 27,150 today. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and leave your contact information in the message for us to reply.
Crude oil: The strategy of short selling when the price rebounded after breaking through the blue zone we alerted last Friday was perfectly executed, achieving a 2:1 profit-to-loss ratio. For today, we will continue to monitor the signals of a downward breakout in price and attempt to sell again when there is a rebound. For specific positions, please consult the plugin.
(Crude Oil 15-Minute Chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the picture, please contact V: Hana-fgfg and leave your contact information in the message for us to get back to you.
Today’s key financial data and events to focus on:
22:30 US Dallas Fed Business Activity Index for April
