U.S. stock futures are sharply higher
Treasury yields are lower
Crude oil is down nearly 3% as traders remove some of the geopolitical risk premium built into the market.
Bitcoin is surging more than 4%.
U.S. dollar is mixed. It is little changed against the EUR and CHF, higher against the JPY, GBP and CAD, and lower against the AUD and NZD.
The AUD is the strongest of the major currencies, while the JPY is the weakest.
Saudi Arabia has been able to redirect more oil through the Strait of Hormuz.
Saudi exports through that route reportedly increased to around 2.9 million barrels per day.
There are also renewed diplomatic hopes. President Trump has expressed a willingness to meet Iranian President Masoud Pezeshkian during the United Nations General Assembly, while Iran has communicated conditions for restarting negotiations.
China has also urged Iran to restrain the Houthis following the attacks on Saudi Arabia.
WTI (November)crude is trading at $93.51, down $2.57 or 2.67%.
EURUSD: 1.1472 to 1.1486 — 14 pips
USDJPY: 156.59 to 157.30 — 71 pips
GBPUSD: 1.3369 to 1.3393 — 24 pips
USDCHF: 0.8217 to 0.8238 — 21 pips
USDCAD: 1.3984 to 1.4023 — 39 pips
AUDUSD: 0.7118 to 0.7135 — 17 pips
NZDUSD: 0.5714 to 0.5732 — 18 pips.
Dow industrial average futures: +457 points
S&P 500 futures: +56.75 points
Nasdaq 100 futures: +332 points
U.S. Treasury yields are lower as they follow oil to the downside
Treasury yields are lower across the curve:
2-year: 4.7161%, down 2.7 basis points
5-year: 4.8108%, down 4.1 basis points
10-year: 4.9514%, down 4.5 basis points
30-year: 5.2899%, down 3.7 basis points
The decline in yields is another supportive influence for stocks. However, the 10-year remains close to the psychologically important 5.00% level, so that market will remain an important barometer for risk sentiment.
Bitcoin pushes higher to the highest level since January 28
Bitcoin is trading near $84,785, up $3,606 or 4.44%.