Market developments
Equities: Global equity markets experienced a powerful relief rally this week driven by a temporary US-Iran ceasefire agreement announced on Tuesday. However, the rally showed signs of fragility, with markets wavering on Friday as negotiations loomed and concerns persisted about whether the ceasefire would hold. Consumer confidence slumped to an all-time low in April, suggesting smaller investors remained skeptical of the rally’s sustainability.
Fixed Income: Treasury markets experienced significant volatility, with yields falling sharply early in the week following the ceasefire announcement before retracing some gains. Treasury auctions showed mixed demand throughout the week, with the $58 billion three-year offering being met with tepid demand given risks of further upside in energy prices.
Commodities: Commodity markets were dominated by dramatic moves in energy prices following the ceasefire announcement. Oil remained volatile as markets assessed whether the fragile truce would hold, with prices rebounding from session lows amid reports that the Strait of Hormuz remained largely closed. Gold notched a third weekly gain, rising nearly 2% for the week, supported by hopes for a diplomatic resolution and sustained central bank buying.