Morning Bid: Ceasefire on a knife edge

By Mike Dolan

May 19 (Reuters) -

What matters successful U.S. and planetary markets today

By Mike Dolan, Editor-at-Large, Finance and Markets

Global lipid prices, stocks and enslaved yields levelled disconnected connected Tuesday arsenic U.S. President Donald Trump held retired hopes for a breakthrough successful Iran bid talks, easing caller ‌tensions that had built again implicit the weekend.

Trump announced connected Monday that he’d called disconnected caller attacks connected Iran that had been planned ‌for today, saying determination was a “very bully chance” of reaching a woody limiting Iran’s atomic programme.

I’ll get into that and much below.

But first, cheque retired my latest file connected what a Kevin Warsh-led ​Federal Reserve could mean for agelong bonds.

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CEASEFIRE ON A KNIFE EDGE

President Trump’s latest remarks came aft Tehran sent a caller bid connection to Washington via mediator Pakistan. Crude prices ticked backmost connected the news, coming disconnected yesterday’s highs, though not by much, with Brent crude staying elevated implicit $110 per tube connected Tuesday morning.

The wider marketplace absorption was ‌modest. Investors are present weary of the backmost and distant ⁠and stay anxious astir the fallout of the vigor marketplace squeeze, particularly arsenic commercialized lipid inventories tally down their last weeks of supply, according to a informing from International Energy Agency main Fatih Birol connected Monday.

Asian shares were shaky connected Tuesday, ⁠with South Korea’s KOSPI falling much than 3%, portion Wall Street futures edged down earlier the bell. European shares roseate successful aboriginal trading, however.

Meantime, restive enslaved markets calmed down somewhat overnight, partially owed to the lipid terms retreat. The pullback successful gilt yields, however, owed much to developments successful the brewing conflict for the enactment of Britain’s ruling Labour Party.

Andy ​Burnham, ​mayor of Manchester and the starring contender to situation Prime Minister Keir Starmer, said helium ​was committed to the government’s existing self-imposed fiscal rules. Gilts ‌were besides buoyed by the IMF’s telephone for the Bank of England to clasp disconnected connected raising involvement rates for now, assuming vigor prices fall.

In firm news, a imaginable mega-merger successful the U.S. vigor assemblage caught investors' attraction connected Monday arsenic NextEra announced it was seeking to bargain Dominion successful a $66.8 cardinal deal. The woody - which would worth Dominion shares astatine a 23% premium to the lasting marketplace terms - would make the third-biggest U.S. vigor firm. Dominion shares jumped 10% connected the bid.