Author：Wall Street CN
On Wednesday, the United States agreed to a two-week ceasefire with Iran in exchange for the reopening of the Strait of Hormuz. This news greatly boosted market risk appetite, resulting in a global market pattern of "stocks, bonds, and currencies rising together, while crude oil and the US dollar fell together."
According to CCTV News, Iranian sources reported early on August 8th local time that Pakistani Prime Minister Shahbaz Sharif has invited delegations from Iran and the United States to Islamabad, the capital of Pakistan, for negotiations. Sharif also stated that the ceasefire between Iran and the United States will take effect at 3:30 AM Iranian time on August 8th (8:00 AM Beijing time).
The ceasefire news boosted US stocks, with S&P 500 futures surging 2.1% overnight, Bitcoin rising 2.9% to $71,334, and Ethereum gaining even more, up 5.1%.
In Asia-Pacific stock markets, the MSCI Asia Pacific Index rose 1.1% to 239.46 points. The Nikkei 225 opened 1.8% higher, and the South Korean KOSPI opened 5.6% higher.
Brent crude futures plunged 15% at the open, currently trading at $93 a barrel, after the United States and Iran agreed to a two-week ceasefire.
Gold prices continued their upward trend following the ceasefire announcement, with spot gold rising as much as 1.6% to around $4,780 per ounce, and further climbing to above $4,816 during the session. Silver rose 2.6% to $74.90, while platinum and palladium also climbed in tandem.
The dollar index fell 0.6%, the euro rose to 1.1677 against the dollar, and the yen rose to 158.71 against the dollar. The yield on Australian 10-year government bonds fell 9 basis points to 4.90%.
Market doubts remain
Bloomberg strategist Mark Cranfield noted that initial volatility in stocks, oil, bonds, and the dollar suggests investors are betting the worst-case scenario will be avoided. However, he also emphasized that "there's a long way to go before a credible exit path emerges, and even then, oil prices are likely to carry an embedded war premium for the coming months."
Robert Rennie, head of commodities research at Westpac Banking Corp., said, "Physical systems cannot be restored to their original state quickly; restarting shut-down wells, redeploying personnel and vessels, and rebuilding refinery inventories will all take months."
In addition, Pepperstone strategist Michael Brown wrote in a client report, "As has been noted many times, market participants have been eagerly anticipating any form of positive news in recent weeks, and even more so, they are eager to see concrete downgrade actions." However, analysts are also cautious about the sustainability of the ceasefire agreement.
Continuously updating
