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What is the ceasefire? What is a ceasefire?

What is the ceasefire? What is a ceasefire?
What is the ceasefire? What is a ceasefire?

Ankur Banerjee gives us a look at what the European and global markets will be like today. And then, 'like that' we are back to looking at shipping routes through the Strait of Hormuz. A new round of tit for tit attacks has upended the tenuous U.S. - Iran ceasefire. This has clouded the long-term prospects of peace in the Middle East. Oil prices jumped 2% after investors worried about a slow recovery in Middle East supply. The U.S. has reimposed sanctions on Iran's crude oil sales, adding to the worries.

Since the conflict began at the end of Feburary, the Strait of Hormuz has been a major focus. Investors are hopeful that the worst is behind us, and that gains in Brent crude will be contained. Investors are preparing for earnings season, so stocks have mostly taken a break after an AI-led wild ride.

The yields on U.S. 10-year Treasury bonds, which increase when prices fall, rose about 3 basis points, reaching a new one-month record of 4.565%. Higher oil prices increased inflation risks.

Later on Wednesday, traders will focus on the minutes from the Federal Reserve's meeting in June to gauge the mood and tone. The Fed is expected to raise rates at least one time by the end of 2026 in order to combat inflation. After a tumultuous week, the spotlight will be also on tech stocks. The afterglow from?the blockbuster IPO by SpaceX has been replaced with concerns about whether or not there is room?for more gains in the historic AI rallies. South Korea's SK Hynix began a U.S. stock sale on?Monday to raise 43 trillion won. The stock is due to begin trading on Friday. This will be a test of investor confidence.

The KOSPI index fell another 5% and a short stop in trading was activated by the stock exchange. These halts have become more common, highlighting the unprecedented volatility of the world's most successful stock market.

The following are key developments that may influence the markets on Wednesday.

The UK Housing Survey for June

* Federal Reserve Minutes during US Hours (by Ankur Banerjee, edited by Sonali Paul).

(source: Reuters)