Headlines:

• A calmer end to the week for markets?
• Iran’s strategy in leveraging on control over the Strait of Hormuz looks to be working
• Global oil supply rose 4.1 million bpd in June as flows through Hormuz resumed, but remained 9.4 million bpd behind pre-war levels – IEA
• How have interest rate expectations changed after this week’s events?
• Bank of Japan is set to keep interest rates unchanged at the July meeting, maintain tightening guidance
• German headline annual inflation confirmed at 2.3% in June, core prices also hold steady
• French inflation confirmed to fall in June, easing pressure on the ECB
• US earnings season is just around the corner

Markets:

• WTI crude up 0.7% to $72.60
• European indices lightly changed, S&P 500 futures down 0.1%
• JPY leads, USD and CHF lag on the day
• US 10-year yields up 0.6 bps to 4.547%
• Gold down 0.3% to $4,107
• Bitcoin up 1.7% to $64,368

It was a slower session as markets settle down with a slight sense of calm in the final stretch of the week.

US-Iran developments continue to hold in limbo, keeping markets on edge for the most part. The latest twist of optimism came from earlier in the day with a US official claiming that negotiations could still yet take place. But whatever the case is, the Strait of Hormuz is now in de facto closure again. So, that is what it is.

Oil prices are sitting higher with WTI crude up 0.7% to $72.60. Meanwhile, European stocks are little changed and more mixed on the day. US futures are also not hinting at much with tech shares slipping back a little. S&P 500 futures are down 0.1% with Nasdaq futures down 0.3% on the day.

In other markets, the dollar is also little changed and holding more mixed overall today. EUR/USD is flat at 1.1430 with GBP/USD up just 0.1% to 1.3425 currently. The yen is a notable mover with USD/JPY dropping down by 0.3% to 161.80 levels after Japan signaled a massive pension shift earlier in the day.

As for bonds, 10-year yields in the US are up just 0.6 bps to 4.547% so that is not hinting at much to end the week. And looking to precious metals, gold is down 0.3% to $4,107 and silver down 0.9% to $59.45 so far today.

As the week draws to a close, the focus heading into next week will shift towards the US CPI report for June on 14 July.

This article was written by fl9bde53b91e184082bbe3aa3acaaf2cb0 at investinglive.com.