As we approach the summer season of tennis, the current game of deuce between the US and Iran offers no sign that an eventual winner might emerge. On Monday morning the US served with stronger terms and by the end of the day, Iran had counter-volleyed that unless Israel stopped its expanding attack on Hezbollah, all negotiations would be put on hold.
The main characteristics of the markets in May were the gradual but steady erosion in the value of a barrel of oil and the insatiable appetite for equities, particularly the juggernauts of the technology sector. A significant fall in volatility suggests a tentative absence of anxiety, although, by historical standards, trading conditions remained vicious. In our market, trading volume, while decent, was lower than in March or April, which is another sign of receding panic.
Markets are warming up to the prospect of some form of peace agreement being reached in the not-so-distant future. These hopes were boosted yesterday as the US and Iran are reportedly on the verge of keeping the hatchet buried for another 60 days, subject to approvals by Donald Trump and the Iranian leaders.
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