From Marc to Market:
Israel and Lebanon raises hopes of a breakthrough in US-Iran talks where a low intensity conflict has been waged under the flag of a ceasefire. The Israel-Lebanon deal reportedly does not include Hezbollah, underscoring the fragility and limits of the ceasefire claims. July WTI is near the middle of the $94-$96 range. The market seems cautious.
The US dollar is mostly softer, with the Canadian dollar the weakest among the G10 currencies. The swaps market has a BOJ hike nearly fully discounted for later this month and the greenback continues to hover near but below JPY160. Japan’s finance minister continued to press with recent rhetoric that it stands ready to act. Poor earnings from Broadcom late yesterday weighed on the chip sector in Asia and has dragged the Nasdaq futures down over 1%. The market-sensitive US May jobs data are due tomorrow but the bar to a change in Fed policy this month, as Warsh chairs his first meeting is very high....
....MUCH MORE
