Risk was off yesterday as both equities and oil lost value. The retreat in the former might be deemed surprising. Credit rating agency S&P Global affirmed its ‘AA+’ rating on US debt, citing elevated tariff revenues, which are expected to offset the fiscal deficit caused by the spending bill.
Geopolitics continues to shape sentiment across all markets. A somewhat encouraging development in the Israel–Hamas conflict emerged yesterday: the Palestinian terrorist organisation reportedly agreed to a 60-day ceasefire proposal and to release half of the Israeli hostages in exchange for Israel freeing some Palestinian prisoners, according to Egyptian mediators. Israel’s response has not yet been forthcoming, and Hamas has rejected the Israeli demand to disarm.
The much-anticipated summit between the Presidents of the US and Russia turned out to be heavy on symbolism and flattery but very light indeed on concrete progress towards a ceasefire, let alone peace, in Ukraine. The red carpet was rolled out for an indicted war criminal whose country, whilst allegedly pursuing peace, was bombing its neighbour as the talks were taking place.
Copyright © 2025 TP ICAP