Market Commentary: Wednesday 8th April

Major news overnight as the US and Iran agreed to a two-week ceasefire in exchange for the reopening of the Strait of Hormuz, offering a temporary de-escalation and allowing room for negotiations toward a longer-term peace agreement. US President Trump has pledged that the US will assist in restarting vessel flows through the strait.

WTI tumbled 19% following the announcement to $91 per barrel, while Brent crude fell 16% and is currently trading around $93.70 per barrel. However, physical oil traders remain cautious, as around 800 vessels are still trapped in the Strait of Hormuz, and shipowners are awaiting further clarity on the ceasefire before sending in tankers.

Sentiment across equity markets has been highly optimistic following the announcement. The MSCI Asia Pacific Index rose 5.1% to its highest level in over a month, S&P 500 futures gained 2.4%, and Euro Stoxx 50 futures rallied 5.1%.

On today’s economic calendar, Eurozone February PPI is due at 10:00 AM, FOMC meeting minutes are set for release at 7:00 PM, and US President Donald Trump is expected to meet with NATO’s Secretary-General at 8:30 PM.

• Bitcoin rose 3.6% to $71,796.63
• Ether rose 6.1% to $2,243.16
• Spot gold rose 2.8% to $4,831.31/oz

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