DeepCap Thursday Outlook

Iran ceasefire drives oil selloff and Fed cut speculation

DeepCap Thursday Outlook

The Day at a Glance

🎯 Theme: Iran ceasefire drives oil selloff and Fed cut speculation
πŸ“Š Risk Mood: Constructive (VIX 21.04, -18.39%)
⏰ Key Event: Gross Domestic Product release
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Key Headlines

  1. Fed officials still foresee rate cut this year, despite war impacts, minutes show
    Federal Reserve policy path and rate expectations amid geopolitical developments.
  2. Interest rates are headed lower β€” real yields suggest a half-point Fed cut is coming
    Rate path expectations and central bank policy outlook driven by economic conditions.
  3. US Mulls Lifting Venezuela Central Bank Sanctions to Aid Economy
    International policy coordination and sanctions-related economic measures.

The Day Ahead

Yesterday’s Takeaway

The fragile US-Iran ceasefire sent oil prices tumbling and risk assets higher as markets recalibrated away from wartime scenarios. Fed minutes confirmed policymakers still see room for rate cuts this year despite geopolitical tensions, driving the VIX down 18.39% to 21.04β€”its lowest level in a year. Energy stocks bore the brunt of the oil collapse, with APA Corporation and Murphy Oil falling over 8%, while crypto-related names like Hut 8 and Riot Platforms surged on renewed risk appetite.

The Setup

Cross-asset moves signal cautious optimism but fragile foundations. The 10-year Treasury yield dropped to 4.29%β€”a 52-week lowβ€”while German bunds hit 2.95% as bond markets price in dovish central bank pivots. EUR/USD gained 0.86% to 1.17 as dollar strength waned, though the currency remains vulnerable to ceasefire breakdown. Euribor’s climb to 2.17% suggests European money markets aren’t fully convinced the ECB will cut aggressively. The subdued VIX reading masks underlying tensionβ€”any escalation could trigger sharp reversals.

Today’s Watch

Light economic calendar leaves markets hostage to geopolitical developments and positioning flows. Chinese vehicle sales data at 7:00 AM could signal demand patterns in the world’s largest auto market after March’s 15.4% decline. CFTC commitment of traders reports at 7:30 PM will reveal whether speculators capitalized on yesterday’s energy selloff or maintained defensive postures in currencies and commodities. With crude oil positioning at 213.5 thousand contracts and gold at 163.2 thousand, any ceasefire cracks could amplify moves. Focus remains on oil price stability and whether European bond yields can hold their lows as central bank cut expectations get tested.

Market Movers

πŸ“ˆ Top Gainers

  • AXT Inc β€” +16.98%
  • Hut 8 Corp. β€” +16.65%
  • USA Rare Earth, Inc. β€” +14.62%
  • Riot Platforms, Inc. β€” +13.53%
  • VSE Corporation β€” +13.45%
  • Oscar Health, Inc. β€” +12.88%
  • Applied Optoelectronics, Inc. β€” +12.8%
  • Infleqtion, Inc. β€” +12.75%

πŸ“‰ Top Losers

  • APA Corporation β€” -9.8%
  • Venture Global, Inc. β€” -9.69%
  • Murphy Oil Corporation β€” -8.52%
  • Sasol Ltd. β€” -8.38%
  • Wix.com Ltd. β€” -8.16%
  • SM Energy Company β€” -8.1%
  • Patterson-UTI Energy, Inc. β€” -8.01%
  • GitLab Inc. β€” -7.82%

Key Events Today

Date Region Event Impact
Fri 04/10 US Core CPI πŸ”΄ High
Fri 04/10 US CPI πŸ”΄ High
Fri 04/10 US CPI πŸ”΄ High
Fri 04/10 US CPI s.a πŸ”΄ High
Fri 04/10 US CPI πŸ”΄ High

Macro Dashboard

Indicator Level Ξ” d/d Ξ” w/w 52W Range Signal
VIX 21.04 -18.39% -14.26% 21.04–31.05 πŸ“‰ Subdued
EUR/USD 1.17 +0.86% β€” β€” Neutral
EURIBOR 3M 2.17% +3.33% +1.88% 2.08–2.18 πŸ“ˆ Sticky
US 10Y 4.29% -0.23% -0.46% 4.29–4.44 πŸ“‰ Offered
DE 10Y 2.95% -4.53% -1.34% 2.95–3.1 πŸ“‰ Offered

πŸ” Today’s DeepList Spotlight

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πŸ“° Yesterday’s Headlines (6 themes)

Rates, Central Banks & Mortgages

Federal Reserve policy path and rate expectations amid geopolitical developments.

Rates, Central Banks & Mortgages

Rate path expectations and central bank policy outlook driven by economic conditions.

Trade & Diplomacy

International policy coordination and sanctions-related economic measures.

Macro: Labor, Consumers & Growth

Structural economic trends and demographic shifts affecting long-term growth.

Market Moves & Daily Wraps

Broad market reactions and regional trading sessions responding to ceasefire developments.

Other Market News

Additional headlines across various market themes.

Social Media Buzz

For your reading pleasure, not to be treated as advice of any sort.

This content is for informational purposes only and is not investment advice. Markets carry risk. Do your own research.