Crude Oil and Bond Yields Are the Signal Equities Ignore
Crude oil and bond yields are both climbing while the Strait of Hormuz stays shut, yet global equity markets have barely reacted.
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Crude oil and bond yields are both climbing while the Strait of Hormuz stays shut, yet global equity markets have barely reacted. Fawad Razaqzada, Market Analyst at StoneX, explains what crude oil, US inventories and bond yields are signaling for the German DAX index. US crude oil stocks have fallen to their lowest level in more than four decades while the Strait of Hormuz remains effectively shut and US Iran talks show no breakthrough. Treasury yields have stayed high across the curve, raising the question of whether another inflationary shock erodes the case for growth stocks. The German DAX has kept setting record highs through it all, cushioned by corporate earnings and AI optimism.
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